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Several major stocks achieved a significant milestone by surpassing their 200-day SMA, signaling potential shifts in their stock trends.

Since their highs in September, chemical stocks have underperformed the benchmarks and broader indices over the past month with larger players witnessing a 9-22 per cent fall during this period. Expectations of weak September quarter results amid high inventory, demand woes and weak realisations have led to the underperformance.

Analysts speaking at the Moneycontrol Mutual Fund Summit in Mumbai were agreed that despite current high valuations, there were sectors hiding in plain sight

“There is a mini bubble in the broader market and one needs to be selective about that. Do not be too quick to jump into an index which has gone up 35% and stocks that have gone up 3X-5X. Okay, the stock has corrected 5%, 10%, let it stabilise, do some homework and then start nibbling.”

While the mid and small cap saw sharp corrections on Monday, the fact is speciality chemical space has been in a very different kind of correction for the last two years. In the last five years many segments of the chemical and specialty chemical sector had been coming into focus. They stay in the limelight for some time, then as too much money chases them which makes their valuations move up sharply and then a long phase of correction after which strong players are able to move upward much faster. While they come under the broad umbrella word of “Chemical sector” the fact is that ...