Catching a falling knife? Some shady smallcaps show spike in retail holdings
NEW DELHI: Market experts are cautioning investors about unfavourable risk-reward on most smallcap counters, but retail investors are still venturing out to catch the falling knife. Or, that is what shareholding data for the past two quarters seems to be suggesting. Retail interest remained high on the buzzing stocks in the first six months of the ongoing calendar, even as select stocks fell between 30 per cent and 70 per cent. On such stock is Ruchi Soya. Individual investors holding shares worth up to Rs 2 lakh hiked stake in this debt-ridden company to 23.7 per cent at the end of June quarter from 15.1 per cent at the end of March quarter and 13.8 per cent at the end of December quarter. This happened even as the stock slipped some 47 per cent so far this calendar. The company is up for...