Finally Markets Crack!

#Sensex almost came down tumbling today by almost 325 points to close below 26500. Monday also was a down day and Tuesday brought no respite in the markets. Just last week we were trading above the 27000 levels and suddenly things are looking different.

Hope you all remember that past few postings we have been warning that lot of froth may be taken out once the markets correct. The froth was in the mid cap and the small cap companies and both the index’s corrected between 3.5% to 4% today.

If you have invested in good quality mid and small cap companies, there is nothing much to worry.

Things are improving on the economic front and the SBI has cut the deposit rates today by 25 bps. All these will help market recover again and hence any further corrections should be used to buy good quality stocks.


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