Share Market Tips | Investors should wait for fair valuation in Midcaps

Investors should wait for fair valuation in Midcaps

Share Market Tips

Stock exchanges BSE has put 109 companies in the list of the Additional Surveillance Megeers. At the same time, according to the media report, market regulator SEBI has also increased surveillance on 109 companies. Such mid-dip companies have been afraid of betting. Since the move of SEBI, the mid-cap index has fallen nearly 200 points on Tuesday. Market experts say that SEBI's decision is correct, but it has been taken at the wrong time. There is already fear of a decline in the mid-term index index that is under pressure. At the moment, investors should wait for the validity of the good mid-cap stocks to fall. 

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How will people in companies trading  

as Fortune fiscal director Jagdish Thakkar said the new rules issued by the market regulator Sebi, so investors will money as margin for trading in the stock of these 109 companies, as well as the value of the transaction Can buy-sale Earlier investors were allowed to buy and sell margin money up to 10 times more. For example, according to the new rules, if you deposit Rs one lakh margin money for stock trading now be able to purchase 50 thousand rupees and sales of 50 thousand rupees. Earlier it was 10 times the limit margin money. That is, you could buy and sell shares of Rs 5 lakh each by giving only Rs 1 lakh. 

They say that due to the old rules, betting was increasing in the market. Whose mindsets became stock multibaggers of many small companies. This has made a big risk especially in the midcaps and smalllaps. The price of many shares was increasing due to constant purchases in the mid-caps segment. The value of the valuation of the stock was not coming from its performance, which made it a bigger risk. 

When deciding on the wrong

trade swift research head Sandeep Jain, the decision of the regulator is right in terms of the investor's interest in the long term, but the time taken in it was chosen incorrectly. Regulators should have taken this decision when the shares were running fast in this segment. After the alltime high in the mid-cap on January 9, the index has been corrected up to 15%. There has been a good fall in many good stocks. At such a time, this decision will slow down in the mid-caps and small-caps. 

After the 47% rise  in the index, in the year

2017, the valuation of the mid-cap stocks had been high. On January 9 this year, BSE reached the level of the Midcap Index 18321 which is the All Time High. At the same time, the index was at 12448 level on January 10, 2017. That is, 47 percent of the index rose in a year. Meanwhile, many mid-cap stocks became expensive. But according to experts, most of these companies are not able to do justice with their valuation and look expensive. Because of which they are under pressure. For the same reason, the sale of mid-caps has also increased due to the recent past. 

Apart from this, the impact  of high prices of crude, growth in US bond yield, weakness in rupee and political uncertainty have led to weakening of market sentiment. The effect is also seen on mid-cap stocks. Domestic investors have been buyers for the past several months, but surveillance can increase them by selling. If this happens, there will be a lot of impact on mid-caps and small-caps.

What do the investors

of the investor market say that SEBI is better for investors and does not have much to worry about in good fundamentals. Investors should wait now in the mid-cap. Many stocks are still on high valuation. After such fall, the fair value should be waited for. If good fundamental stocks come to Fair Value, then they will get a chance to buy it again. 

The Content of this Blog has taken from here https://money.bhaskar.com/news/MON-MARK-STMF-MRKT-infog-investors-should-wait-for-fair-valuation-in-midcap-5888270-PHO.html