With benchmark indexes scaling new heights, is Indian Equity Market Really in a Short Term Bull Run?

A look at a level below benchmark indexes tells us that the true story is quite different.

Today I read one of the headlines in Economic Times which said all pundits agree that Indian equity market is in bull run and was compelled to post this. As far as long term growth is concerned it has been in a bull run for past 2 decades and continues to, but is it the best time to invest?

In short term, if one looks beyond the benchmark indexes then the story is quite different. For example, between January 2018 till now, the NSE Midcap 100 has lost 18%, at a time when the benchmark Nifty 50 gained 6.7%. Similar is the story for BSE Sensex (gained ~9%) and BSE Midcap (lost ~20%) during this period. The BSE Smallcap index has also lost slightly over 20% during this period.

With only the benchmark indexes that include only a handful of stocks moving higher and indexes with majority of the stocks falling, I would beg to differ!

Check the charts below:

Sensex and BSE Mid cap Comparison

NSE midcap

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