The decline in the stock market may now includes small-cap stocks. Especially JMT Auto, BF Utilities, Sikyuent Sintefik, Adwanta and is likely to see a sharp drop in Texmaco Rail.As a result, the valuation of these companies is said to be expensive. So in the current quarter, good growth in revenues and profits are not,In the smallcap space Larjkap stocks may fall substantially. So investors before investing in any stock fundamentals should surely Czech .
Why are likely to fall in cap
Uppal, head of Maystokrisrc Lokesh says the 769 stocks from the BSE Smallcap 462 stock their five-year average PE (price to earnings ratio) are trading up.However, 166 stocks are trading below the five-year average PE. The poor are the quarterly results, the stocks of these companies are likely to sell fast.
These stocks may fall in
Lokesh Uppal says that many small firms price to earnings ratio (PE) is quite expensive.JMT Auto as the five-year average PE is 51.92, which is 256.79. However, the five-year average PE BF Utilities is 318.05.Which now is 459.87. Similarly, the five-year average PE Texmaco Rail is 47.07, which is 189.41.Therefore the estimated growth in corporate earnings was not likely to see a sharp drop in the stocks.
Foreign brokerage also raised concerns
Credit Suisse said in a note, "the best performance of mid-cap (International pressure less intrusive) continued in 2016, even though.But liquidity trends as well as the need to monitor the reversal again.
The benchmark Sensex lost 1660 points in 2016
The decline in the global market is the domestic market could not remain untouched. From January 1162 till January 15 index points, or 6.37 per cent is lost.In the 508 points, or 6.4 per cent were. Along with the small-cap index has dropped 7.5 per cent in a week.
And how many will fall
Fortune Jagdish Thakkar, director of fiscal 2016 for the market and the market of the poor is beginning to show a decline of around 7-8 percent.The Nifty may fall 400-500 points and the Nifty is 7000-6800.That time will be quite attractive market valuations and the purchase will be great opportunities.After a decline in market valuations will be attractive to investment advice and after the fall.Power for the banking sector, the steel sector is the biggest problem.Until earnings growth of 15 percent in quarterly results of companies does not come around until the market fluctuations will be seen.
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