The bull rally witnessed during the last six months in the market have seen an upsurge of nearly 16 percent on the backdrop of increasing confidence of retail investor in the Indian market coupled with excess liquidity.
Despite stretched valuation in the market, the bullish sentiment among the market participant continued to remain on a positive trajectory. The reviving fundamental structure of the Indian economy and aggressive approach of government towards reforms has played a critical catalyst to transform the market into a bonanza.
Although the correction phase taking place at a moment on the backdrop of GST implication, the long-term story remains on bullish trajectory.
The domestic market during the past 6 months was attractively priced to reap the benefit of the higher economic growth projection as anticipated by the market.
Since most of the mid & small cap stocks are a good proxy to play out the economic growth, many of these stocks doubled the investors’ wealth.
The sector reforms that came under the government’s agenda actually made a noise in the market as mutual fund managers and retail investor took a huge bet on such stock to garner the value of lower price and reviving growth rate of specific stocks.