August 1, 2021

Zerodha founder explains – Finding the right stock or sector in today’s market

In a raging bull market like the current one, it is counter-intuitive for one to think about going wrong with one’s bets, as everything seems to have the potential to make money. Such a market environment usually brings in complacency and participants shun caution to make the most of the situation. It is during these times that a nuanced approach comes in handy to come out better than the crowd.

 A common theme that I have noticed across the course of the last financial year is the disparity in performance among constituent stocks of the same industry. Post the market crash in March 2020, the rally might appear to be broad-based from the perspective of the benchmarks. However, when analysed closely there has been a considerable gap between the performance of sectoral peers. While it is difficult to pinpoint the reasons behind this phenomenon, the gap in…

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