A part of this affect is already visible, in the disparate momentum of crypto, commodities, fall in the interest of IPOs and mid & small caps.
A strong reiteration along with the clarity that it will be of small amounts, based on the upcoming data like employment, inflation, and delta variant.
It is sure that extra liquidity will reduce over a period, however, slowly it will be supplemented by the rise of economic growth & stability.
Despite these two headwinds , we feel that this consolidation will be on a short to medium-term basis, supported by low interest rate cycle and supportive policies till 2023.
The broad market can rebound, however on a long-term basis the momentum will be more with largecaps as they are more attractive based on a risk to reward basis.
The ongoing correction of mid & small caps, their broadest indices have dipped by 6 percent and 10 percent from 52-week high, respectively, has provided opportunity to trade on a short to medium-term basis.