It’s Time To Exit From ‘Those’ Stocks!

Understanding Intrinsic Worth and Market Evaluations

Were you among the investors who sold stocks during the recent market panic, or shouldn’t you have followed the herd mentality? In the unpredictable world of stock markets, recognising the opportune moment to sell can be as crucial as identifying the right time to buy. Mandar Wagh delves into the concepts of intrinsic value and overvaluation, offering insights into strategies investors can employ when their stocks are deemed overvalued 

What an exceptional fiscal year it has been for the domestic stock markets, wouldn’t you agree? With the Indian benchmark indices BSE Sensex and Nifty 50 surging by around 30 per cent, and broader indices experiencing an astounding growth of over 60 per cent each, the pervasive investor optimism was unmistakably evident throughout the preceding financial year. In March 2024, significant selling pressure was observed across the broader markets, notably affecting power, energy, real estate, railway, and PSU stocks. This could be attributed to profit booking following sustained strong rallies or could reflect a cautious response to remarks from the SEBI chief warning about market bubbles and stock overvaluations.