More than two-thirds of midcap and smallcap stocks on the National Stock Exchange (NSE) have fallen 20% or more from their 52-week highs. The main reason for the decline in mid and smallcap stocks is their high valuation. Usually, a decline occurs when the valuation is high. Weak results of the September quarter and selling by foreign institutional investors (FIIs) are also a reason for this. Till now, investors must have made money from midcap and smallcap stocks due to the boom in the market, but now they need to pay attention to some basic things. Which ones to hold and which ones to sell? When to sell? When to buy? When to hold?
