Trying to chase market momentum many a time, end up burning your fingers. That is exactly what has just happened to small investors in at least nine BSE500 stocks.
Retail investors, defined as those investing up to Rs 2 lakh in the shares in a company, bought so much into those nine companies during the September quarter that their combined stake in them rose by 200-700 basis points in three months. A 28-115 percent rally on such of these stocks in the June quarter seems to have drawn the investors to these counters.
None of the stocks has delivered positive returns since June 30.
Data showed small retail investors hiked stakes in Indiabulls Housing Finance by 432 basis points to 16.02 percent in September quarter from 11.7 percent in June quarter, following a 115 percent rally on the stock in June quarter. But the stock is down 27 percent since then.
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