Market pain may continue; Deven Choksey on what he would be adding in this fall

Deven Choksey, MD, DRChoksey FinServ Pvt. Ltd, says “the fall has been quite sharp and acute in the midcap and smallcap space. We are basically going to see this pain continuing and though people have a lot of money to invest, this particular fall, perhaps should be waited out for some more time for a variety of reasons. One among them would be how exactly the domestic investor stabilises his losses because in the options market, including the derivatives market, the amount of money that he has to write checks for the mark to market, will probably put pressure on the market.”

We would not want to have headed further into the festive season with this kind of a market. Is everything going to abate soon? The reasons were already there and so why this knee-jerk reaction with the Indian market plunging over 800 points?
The FIIs are taking the money out and the current domestic market players are writing losses at this point of time and as a result, they are required to sell some part of their portfolios to pay off the sharp mark to market difference which is coming up on some of the holdings, including some of the midcap and smallcap companies.

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Over there, the fall has been quite sharp and acute and a large percentage fall has come. We are basically going to see this pain continuing and though people have a lot of money to invest, this particular fall, perhaps should be waited out for some more time for a variety of reasons. One among them would be how exactly the domestic