Testing Times!

Tests???were the reality of the last two weeks. Many tests–the board exams, the recent market plunge testing investor patience, or SEBI’s stress test mandate for mutual funds.

Over the said period???there was a prevalent gap between the benchmark and broad market indices. For instance, during the first week of March, while the SENSEX and Nifty reached new highs??, the small-cap index experienced a decline??, breaching crucial levels.

Let us discuss the three significant market instances that tested the investors over the period.

When the Market Tumbled

Last week, investors witnessed a blood-bath??in the midcap and small-cap segment, pulling the index significantly. It wiped out ~?13 lakh crore on March 13 after the SEBI chief’s statement on mid and small-caps. The market fell ??for the third straight session on Wednesday (March 13).

“Fear, indeed, cuts deeper than swords”, wrote George RR Martin. This was the theme of the market on March 13 as ~88% of 3976 BSE listed stocks nosedived?after the regulatory chief raised the caution around “froth” in the mid- and small-cap segment

FMCG - The Lone Survivor

As the benchmarks and the broader indices fell??, the Nifty FMCG index turned out to be the lone survivor?? in green. It was the only positive sectoral index on March 13.

The weekly technical indicators of the index pointed towards being ‘Neutral’ for the week (March 11 to March 15). The monthly technical indicators point towards the index being bullish??with an RSI (14) close to the 70 level. The sector is also witnessing an amplified volatility.

All that Glittered was Gold

On March 4, Gold prices hit a lifetime high backed by geopolitical uncertainties. Already, gold ETFs and Sovereign Gold Bond investments have become popular over the last few years.

As per the recent AMFI data, gold ETF retail accounts were as much as 48.4 lakh, as per December 2023 figures. Also, the news of the RBI allowing gold import without import duties cheered??the gold traders further, bringing gold more shine.

?So, how did you fare in the market tests over the last two weeks? Was it ‘Sale Season’ or a ‘Wait and Watch’ approach for you? Looks like the??cold winds are retreating, and the??is about to shine. Please wait for our next edition, on March end, while you are fused getting Vitamin D(mat).

To stay updated on actionable insights, visit ???? https://bit.ly/3SVUWys

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