Why are midcap, smallcap stocks falling after Sebi chief's froth warning?
Stock Market today: Over 80 per cent stocks in the BSE Small-cap index have recorded negative returns since February 19.
Source: hindustantimes.com
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Stock Market today: Over 80 per cent stocks in the BSE Small-cap index have recorded negative returns since February 19.
Smallcap 250 index is trading at around 22 times EPS on 1-year forward basis, which is at 21 per cent premium to historical average and almost 50 per cent premium to valuations around March 2018 levels
In a secular bull market, secondary correction is a common phenomenon wherein small cap index has a tendency of correcting 12-15 per cent from swing highs, said ICICI Securities.