The Stock Market is in RED

Source

The last couple of days the Indian Stock Market saw some Blood and mainly the Midcap and Small cap stocks took the hit due to a few reasons. One of those reasons is obviously the latest news of Civid cases that suddenly took a spike and that has the market bleeding. The other reason is the fact that SEBI has imposed some new guidelines for Mid Cap and Small Cap Stocks that won't allow Operators to pump the price of the stocks as they wanted. SEBI said that some stocks are currently way overvalued and they would like to make things right.

In my opinion that sounds like something that is opposed to the Free Market Rule where everything is decided by Supply and Demand. I do get why SEBI is going this route but still putting 80% of all the stocks in a separate category where they get the right to limit trades in stocks is not good at all. Even good fundamental stocks took huge dips of over 5-10 percentage. So yeah it was a good opportunity to buy some stocks and get some easy gains but sadly I wasn't able to gather funds to Invest. Now that the market is slowly recovering tomorrow I have already planned to invest some Money into SmallCap and Midcap Mutual Funds. The reason I am investing in Mutual funds and not in direct stocks is that my Stocks Portfolio has doubled the amount of my Mutual Fund Portfolio and I want to keep the ratio as close to 1:1. So the first thing I do tomorrow is to invest a bunch of Money in some Mutual Funds that will give me some good Returns.