Edit this postThe market has entered a low-volatility consolidation phase, which may continue in the short term. With U.S. bond yields declining, the selling pressure from Foreign Institutional Investors (FIIs) has eased, and they are even beginning to buy marginally. If FIIs continue to buy, Domestic Institutional Investors (DIIs) might choose to sell, which will keep the market in a range with a slight upward bias. Given the high market valuations, this is an ideal and healthy trend
However, excessive behavior often occurs in a bull market, such as retail investors chasing small and mid-cap stocks while ignoring valuations, and excessive speculation in F&O and intraday trading. Additionally, irrational speculative activity in the small and mid-cap sector is becoming a serious concern. Some small and mid-cap IPOs with no performance track record are being oversubscribed, with retail investors chasing these IPOs for listing gains. This unhealthy trend often ends in investor failures
