Is It Time to Buy Small-Cap Stocks?
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If you currently look at the NIFTY 50 Charts for India we can clearly see that the Market has corrected by a lot in the last couple of months and has now started to stay at a level zone for the time being if there are some Stocks that took a lot of beating in this time that would have to be the Small Cap Stocks. So some might say that this might be a good time to Invest in Small Cap Stocks and I would say partly Yes, but there are other parts to consider.
We the retail players are never so big that we can move the market even one centimeter. Still, there are some entities that are able to pull or push a MARKET up or down at least for some time and these entities are mainly known as Institutional Investors. There are two types of Institutional Investors, Domestic and Foreign and these are the guys you need to keep track of as they regularly INFUSE and DIFFUSE Cash from our Economy if you look carefully you can ride the wave of their CASH INFLOW and make some decent Returns.
This is something that even though doesn't matter theoretically definitely matters Practical and we have a beautiful example of ADANI right in front of us where a report was published by HINDENBURG and even though it was a very detailed review of how the Stock was Bad it showcased ADANI as something that will most definitely fail and it also made some not so subtle assumptions and said that as TRUTH. But what happens is that the news spreads like Wildfire and the ADANI Stocks Burn like Wildfire.
Similarly, there are a lot of other factors that contribute to such fallacies but there are a lot of triggers that you can look out for so that you can make a proper decision as to when you need to Buy a Stock right now definitely looks like a nice zone to buy some Small Cap Stocks.
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