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Tuesday, April 16, 2024

Growing concerns about the inflated prices of small-cap stocks

<p>The market surge seems to be reaching its limits, especially in the larger market, according to V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.</p>
<p><img decoding=”async” class=”alignnone wp-image-452878″ src=”https://www.theindiaprint.com/wp-content/uploads/2024/02/theindiaprint.com-growing-concerns-about-the-inflated-prices-of-small-cap-stocks-bse-getty-ed-11zon-750×500.jpg” alt=”theindiaprint.com growing concerns about the inflated prices of small cap stocks bse getty ed 11zon” width=”991″ height=”662″ title=”Growing concerns about the inflated prices of small-cap stocks 6″ srcset=”https://www.theindiaprint.com/wp-content/uploads/2024/02/theindiaprint.com-growing-concerns-about-the-inflated-prices-of-small-cap-stocks-bse-getty-ed-11zon-750×500.jpg 750w, https://www.theindiaprint.com/wp-content/uploads/2024/02/theindiaprint.com-growing-concerns-about-the-inflated-prices-of-small-cap-stocks-bse-getty-ed-11zon-1024×683.jpg 1024w, https://www.theindiaprint.com/wp-content/uploads/2024/02/theindiaprint.com-growing-concerns-about-the-inflated-prices-of-small-cap-stocks-bse-getty-ed-11zon-768×512.jpg 768w, https://www.theindiaprint.com/wp-content/uploads/2024/02/theindiaprint.com-growing-concerns-about-the-inflated-prices-of-small-cap-stocks-bse-getty-ed-11zon-150×100.jpg 150w, https://www.theindiaprint.com/wp-content/uploads/2024/02/theindiaprint.com-growing-concerns-about-the-inflated-prices-of-small-cap-stocks-bse-getty-ed-11zon.jpg 1200w” sizes=”(max-width: 991px) 100vw, 991px” /></p>
<p>Bulls are being restrained by higher valuations, and he stated there are no significant positive catalysts that will be able to continue the advance in the foreseeable future.</p>
<p>The US market rise may also be restrained by expectations that the Fed would reverse course on its rate reduction and by a consensus decision to reduce the amount of rate cuts this year. He also said that this would have an impact on the Indian market.</p>
<p>Kotak Tiny Cap Adding limitations on investing in their small cap fund to the ranks of Tata and Nippon small cap funds is another warning sign about the small cap segment’s inflated values, he added. He advised investors to learn from this and shift some of their funds to the security of big caps.</p>
<p>As traders wait for statements from Federal Reserve speakers, equities in the Asia-Pacific region were trading lower, according to Deepak Jasani, Head of Retail Research at HDFC Securities. Wall Street had seen a retreat around record highs.</p>
<p>Monday’s session was turbulent and the Nifty closed down. Nifty was down 90.7 points, or 0.41%, at 22122.1 at the closing. On Monday, the Nifty formed a little candle with a high-low range of 127 points, and it closed lower. Right now, it seems to be a correction to the previous upmove. The 22249 level of resistance may now test Nifty, and in the short run, support may be found in the 21893-22050 area.</p>
<p>The BSE Sensex is up 123.41 points, trading at 72,913.54 points. Titan, TCS, Powergrid, and HCL have all increased by more than 1%.</p>
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