Monday’s lakcluster note trading in the domestic benchmark indices Sensex and Nifty was a result of sluggish activity in other sectors offsetting advances in energy and financials equities. Asian counterparts continued to exhibit restraint as new US data tempered hopes for an early rate cut by the Federal Reserve. The trade’s biggest sectors losers were the IT and real estate indexes. India’s VIX, however, increased.
Investors should exercise caution when pursuing numerous mid- and small-cap stocks that are gaining quickly without any underlying reason. A cartel of operators may readily influence many of these stocks because they have relatively little floating stock. Only equities with solid fundamentals will provide consistent, high returns over the long term.