Tuesday saw a lacklustre performance from the Indian stock markets. Senex was restrained as trade cuts were implemented by index heavyweights TCS and HDFC Bank.
IT and media stocks fell more than 1% apiece. Moreover, all broad market indices were experiencing negative trading.
Perspective on the Market: “As the holidays and the New Year draw near, the market is probably going to enter a consolidation phase. Following the strong surge of the previous two weeks, a period of consolidation is also preferred as it will restore market health.
Investing strategies that involve buying on dips are an alternative to buying en masse. It would be dangerous to chase the overvalued mid and small caps that have risen too quickly due to the enthusiasm of retail investors. Investees can purchase premium large caps during declines. PSU banks, which are reasonably valued, offer another layer of security.