On a day when nifty and sensex are trading in red, thanks to the banking sector. It is the mid-cap index which is not only keeping its head above the water but even market breadth in that segment is better. This is pretty much the opposite of what happened on the day of the budget. So, as a principle of investing, don't look at short term movement of indices to decide whether to invest in a particular stock or not. It is the underlying business which matters. Second, because the reaction of the market to STCG and LTCG has been very muted, there is a possibility that the party on the street might continue, with the usual phase of profit booking at regular intervals. So,one can be bullish, but take into account the fact that valuations are not cheap, so have more stringent parameters when looking at small cap stocks and also have a long term outlook.
