Best Time To Invest
Porinju Veliyath Equity Intelligence advises investors to invest in small and mid-cap stocks during this downtrend. He believes in a strategy called value investing, where you find an undervalued company compared to its current market prices.
His optimism about India’s economic growth predicts that India will reach a 6-7 trillion-dollar economy by 2030. Despite the current challenges, there are good opportunities for smaller companies.
Porinju Veliyath from Equity Intelligence says that the market’s correction and consolidation are good opportunities for investors to invest in small- and mid-cap companies.
2018 Boom
Investors are scared that the incident from 2018 will not happen and are wondering if the boom in mid-cap and small-cap is coming to an end. Still, Porinju Valiyath is confident that the current market situation is different from the situation in 2018.
Many experts have warned about the market being overheated for months, mainly due to a lot of money pouring into the market and companies trying to raise funds.
Porinju presents a report by Edelweiss that shows that two years ago, small and mid-cap companies had a high PE ratio, and since then, their earnings have increased significantly. He acknowledges there is some overvaluation in certain areas of the market due to new investors who had less experience coming in. He is optimistic about small and mid-cap companies despite the recent market downfall.
Change In Market
The market has changed significantly since COVID-19, and one shouldn’t expect a repeat of what happened in 2018. People with pessimistic thoughts about investing in small-cap companies are now talking big and taking action in small-cap companies.
The economy is growing rapidly, and the company’s revenue has significantly increased compared to 2018. A recent drop in the market may have caused panic, but it was needed for the market to perform healthily. Porinju thanks the regulators for addressing excessive speculation and manipulation, especially in smaller companies.
Porinju blames new investors for this downfall in the market. With many inexperienced investors participating, the market became overheated, and when regulators cautioned mutual funds to manage risk and stop accepting new investments, it dipped the market further.
Disclaimer: The views and recommendations made above are those of individual analysts or brokerage companies and not of TheStockMarketLive. We advise investors to check with certified experts before making any investment decisions.TheStockMarketLive. We advise investors to check with certified experts before making any investment decisions.
