“Some of the IT headwinds in terms of subcontracting costs, the margins because of aggressive wage hikes, and the big time hiring that they did, are behind in terms of numbers. We should see some margin improvement, as well as when the demand comes up those things will look much better.”
Mutual fund data clearly suggests that a many advisors kept egging on investors to increase exposure to the smallcaps and other frothy spaces even as the market took off, kind of irrationally.
The broader markets have crashed sharply in this latest round of sell-off. The mid-cap and small-cap indices have underperformed the benchmarks with the Nifty Midcap index down 7.5 percent in six straight sessions, as against a 5 percent fall in benchmark Nifty in this same period.
InCred Equities believes that the consolidation is likely to be sustained till December 2023, until the poll outcome in five major states is announced.