After last week’s sharp correction, the street is bound to grapple with its own fears and anxieties. Will the correction spill over to the mid-caps? Will it continue, both in terms of price cuts and time? There is a likelihood that as the Q2 season kicks off, the mid-cap segment will witness some profit-booking/rational shifting/consolidation. Many sub-segments may be formed in this space – and given the mix of head and tailwinds, this segmentation is likely to remain till there is clarity on how China emerges. So, if you are putting in fresh money, be selective and focus on managing risks. Hedge for the short term, and think from a long-term perspective.
