Thursday, March 13, 2014

NIFTY: This Time It's Different?


The present bull run is quite different, compared to the recent ones we have seen. In terms of the relative performance of large cap (NSE NIFTY 50) vs mid cap (NSE NIFTY MID CAP 50), it rather resembles the recent bear phases

Usually, in recent times, a bull run meant mid caps outperforming the large caps, and opposite in a bear. But so  far in the present bull run, It is a story of large cap outpacing the mid cap. I am yet to check (will probably follow up on this later), this perhaps means defensive/ dividend over value. And hot money vs retail. This is far from a solid all round bull run. 

Perhaps when you see the mid and small caps catching up, then you know it is a view on economic upside, rather than the tyranny of asset allocation. In the mean while, stay cautious. Or better still, pick value. There are plenty of value left in the market if you can hold on to them come what may

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