Stock market
These days, small investors are jumping in Indian stocks in the urge to earn money quickly. He is immediately moving towards smallcap and midcap stock by selling shares of Nifty 50 in the process of becoming a millionaire. He is getting stuck in the rage of the stock market, leaving more safe options and running towards the risky investment option.
Retail investors are reducing their holdings in the strongest companies in India in large numbers in the greed of sharp returns. The urge to seek profit-booking, and the next multibagger has pushed them into the unstable, high-contract world of small and midcap stocks, leaving the safety of Nifty 50 stocks. The June 2025 quarter figures show that retail investors have reduced their stake in 34 out of 50 companies in the Nifty Index. That is, small investors have taken a bearish stance in three out of every four bluechip stocks.
What are the psychological reasons for cell-off?
What is inspiring millions of investors stability? According to market experts, many powerful practical triggers are responsible for this. The head of market Perspectives and Research of Samco Securities, Apoorva Sheth says that the disappointment of retail investors is clearly visible. Looking at the recent investment behavior, it seems that retail investors are fed up with the ongoing consolidation in largecap stocks. The sideways movement of largecap stocks is prolonged, and when the smallcaps are giving triple-design returns, the single-design of the larger leaders looks like a stagnation.
Karthik Jonagadla, the founder of Quantus Research, says Retail Investors Bluechip is going out of the Nifty Stocks and going into smallcap and midcap, so that we can get big profits. FOMO can produce better performance of these low -value segments in previous bicycles, increasing retail investors to increase participation in already climbing stocks. Sheth also believes that Kiritail Investors Follow Trends, and the recent better performance of broker markets has created a FOMO effect. Stocks that have already climbed, feel that they will go up further.
Risky go to Smallcap!
Experts in the ET report say that the discovery of multibaggers is exciting, but market experts are unanimous about the dangers of this strategy. This is called a classic late-cycle optimism and stability-changing gambling. Rathi of Anand says that this is a serious risk in bulish time. Making large investment in smallcaps by selling largecaps with solid fundamentals may seem beneficial, but this causes investors high volatility and concentration risk. Apoorva Sheth also says that it is especially a big risk for inexperienced or emotionally inspired investors. Diversified Bluechips (eg RIL, HDFC Bank) are turning retail stability delicately.
(Disclaimer- TV9 Hindi does not recommend investing in any fund or stock. Take advice of experts before investment)