Due to these factors, retail participation is still low and DIIs are net sellers in Indian stock market on almost daily basis. Can you imagine, retail participation in India in terms of investments in stock market was at 4 years low in Aug-Sept 2012.
But good times are going to come sooner than later, in case of any corrections, DIIs will get into the market and buy on dips. Another positive is weakness in dollar and Rupee appreciation which hits 5 month high. This will ease some pressure of govt in terms of importing crude oil.
Small Cap Index during end of Sept 2010 was at around 10000 which made a high of 11367 on 11th Nov 2010 and today closed at 7186. Hence, Small Cap Index has given negative returns of -28% in last 2 years. If we look at Mid Cap Index, it was at around 8000 levels two years back and today closed at 6704, down by -16% in last 2 years. Similarly, Sensex is down by -6% in last 2 years.
Is this really bad? Are you worried? You should not!
Its a fact that nobody in this universe can time the stock market but its wise for medium & long term investors to invest during tough times. Using this approach, Investors can bet on stocks which are fundamentally strong and are trading below their intrinsic value, you can get them cheap due to poor economic conditions and negative sentiments in market. And once sentiments turn to positive, it rewards investors who entered during market lows giving great returns to them on their investments. A right approach towards equities - buy at low, sell at high. But more important is to invest in right stocks.
Hence, you must consider this as an opportunity to invest in fundamentally good stocks for medium to long term.
So in which stocks you can invest in?
You can invest in small, mid as well as large cap stocks of sectors which are heavily discounted. Small and Mid cap stocks are more volatile compared to large cap because of low liquidity. Hence, during bad times, they experience more pain in terms of falling prices. But good small and mid cap companies with sound fundamentals can give you multibagger returns in medium to long term.
Past performance of Saral Gyan - Hidden Gems
It gives us immense pleasure to share that Saral Gyan - Hidden Gems (unexplored multibagger micro/small cap stocks) outperformed all major indices during last two year giving excellent returns to Hidden Gems subscribers during bad times of stock market.
Below are the 4 Hidden Gems of 2011 which have given more than 100% returns.
You can download complete research report using below links:
Equity analysts team at Saral Gyan gives 100% to identify the best investment candidates, objective is not only to protect your capital but also to grow it at healthy rate.
Subscribe to Hidden Gems and Grab Best 3 Small Cap Stocks to power your equity portfolio. You need not to pay any additional cost other than annual subscription charge (Rs. 7500 / $ 150) for grabbing best 3 Hidden Gem stocks to add in your portfolio.
Under annual subscription, you with receive total 12 Hidden Gems monthly research reports along with 3 stocks research reports of past for fresh investment. We will also share Hidden Gems - Flash Back report (update of 21 previously recommended Hidden Gems).
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