Is it time to book losses or ride out the correction? Neeraj Dewan answers
«There may be a correction and if some people are forced to sell because of leverage bets, because of some redemption pressure by funds, there can be a lot of reasons why some stock can be sold more than others and they can, for a shorter term, become extremely cheap,» says Neeraj Dewan, Market Expert.
How are you feeling? What are you doing? And what should our viewers do, those who have small and midcap stocks? I mean, there are fund managers saying nothing changed. There are fund managers who are saying everything has changed. There are some fund managers who are saying that it is too late to sell now. For somebody who has exposure to small and midcap stocks, should they switch to largecap stocks? Should they sell and raise on cash or should they double it up?
Neeraj Dewan: Yes, definitely the mood is not that great, seeing the kind of market we have seen for the last few sessions. But then there is a lot of talk about small and midcap stock whether we should sell everything or should hold on to them.
So, definitely, this is a very good question for these kind of days. So, I think that if someone is holding mid and smallcap stocks, there will be two kinds of stocks that you hold. One, fundamentally, you research the stock, you have taken the advice and invested in them for a little longer term and where you feel the management are doing well, they are delivering, there is no problem as far as valuations are concerned or the stock performance based on the valuations is concerned.
So, there, one should hold on.
