All the action of this result season was reserved for the last week. In the early weeks, the bluechips and nifty heavyweights disappointed. Most investors were expecting results to get worse as the season progressed. But, the Q1 results got better as the season neared its end.
The market was positively surprised by many companies in the smallcap space. Management commentary was strong and social media euphoria was on a high. Valuations which seemed high before the results trended even higher after. Institutional investors remained under deployment pressure in smallcap companies as performing companies simply didn’t give an opportunity to buy at lower valuations. Investors waiting for valuations to moderate lost patience and jumped in to buy at higher levels.
Most people waiting to buy the dip seem to have given up hope. The slew of IPOs are likely to sail through smoothly. The persistent selling by anchor investors and pre IPO investors in past IPOs is likely to get easily absorbed by domestic institutional investors.
But, the market has its own way of surprising exactly when we think it is decisively in the grip of the bulls.
