Small and midcaps facing valuation concerns and caution from SEBI. Investors advised to assess risk appetite and liquidity needs. Proper asset allocation crucial for managing risk. Long-term investors should stay invested despite current market conditions.
Sandip Sabharwal discusses the impact of regulatory measures on mutual funds, particularly small and midcap funds. He also highlights concerns about the hospital space and potential negative effects on margins. Additionally, he talks about profit-booking in March, triggers for pipe companies, as well as the constructive outlook on the auto sector.
“If you look at the kind of companies where the stocks are going up even more are the ones that are not even covered by many research houses. So the stocks that are the smaller ones, not in any coverage by the sell side are still seeing a lot of rally. So clearly, there is some irrationality.”
“So as far as elections are concerned, markets are beginning to recognize that it is not a done deal. There is some probability of a negative surprise because if the current government in the current form does not continue, it is going to take a substantial amount of zing off markets in almost 15-20% of valuation correction. It would not happen on a single day though.”