Retail investors have been betting on Indian IPOs this year, chasing the first-day ‘pop’, which has averaged about 30%. However, a study by the market regulator showed that most of these investors end up selling their holdings within a week.
Market volatility revives demand for defensive plays
Defensive stocks are back in vogue as investors look for a haven amid rising global volatility.
The Nifty FMCG index hit a record high on Monday, while the index of state-run enterprises — previously driving the record rally — is nearing correction territory.
See also: A $1.87 bil IPO overbought 400 times shows India stock frenzy
ASK Wealth Advisors, part of the ASK Group, which oversees US$10 billion in managed assets, suggests investors switch toward sectors with favourable risk-reward profiles. Consumer staples and banks are among them.
