Well, the Dow again shed a lot of weight yesterday. So did most of the stock exchanges around the world. All of this came on the back of Goldman Sachs' downgrading several large banks and the resurfacing of housing concerns in the U.S.
These concerns will impact the Indian markets negatively, expect a downward correction of 1%-2%.. Given the bull run in the last one month, these corrections are becoming routine affairs. The last bull run was driven by large caps; small- and mid-caps missed most of the action. For the next phase of the bull run, the market, as a whole, needs to participate, not just few select stocks/sectors.
As a friend of mine commented, mid-cap banks have started to move; keep a sharp eye on them.. You will also do well to adopt a wait-and-watch strategy rather than panicking and selling off your holdings. Don't expect the volatility to sizzle down just now, it took a lot of time building up; it will take some more time, maybe another quarter or so, to settle down!! [Settling down sounds quite crude and confusing but I guess this is the best I could do. .. Sigh .. .. ..]
Anyways, play safe and keep a sharp watch on the market movements!!
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