An analysis of market breadth since October 1 reveals an interesting trend. Except when the entire street was under pressure, market breadth has been better on most days. This suggests that, while there was selling by FIIs, there was no panic among domestic retail investors. Even when the Adani issue hit the street last week, the reaction of the broader market clearly indicated that the underlying bias has changed. So the recovery was sharp and swift. Now, with a major event like the Maharashtra election behind us, the chances are that parts of the mid-cap segment will get their shine back. So is it time to shed fear and skepticism? Perhaps, but remember: There will be short-term volatility; and a major negative event on the global markets could impact the street.
