Edelweiss comes out with large and midcap model portfolios; advises caution to investors

The start of August saw a continuation of the rally that started in the latter half of the previous month and an equally sharp upmove was seen in the midcap, smallcap stocks as well. However, all of those gains were washed off in no time with a 500 point fall in just 1 week in Nifty and a 1000 point fall in the Nifty midcap index.

Though it is futile to pinpoint to a single reason for any short term movements of Market, the few reasons that led to a dampener in the otherwise optimistic market were SEBI’s new rules on pledging – unpledging, a pause in the vaccine trials by AstraZeneca and a fall in US markets, Edelweiss Securities mentioned in a recent report.

Nasdaq saw sharp 10 percent correction in just 3 days led by a tech rout. The IT index which was the most resilient in the last few months and had posted the best recovery was trading at its lifetime highs this month, just before this sharp pullback, noted the brokerage.