Indian Equity market is resilient

This year has been volatile for investors so far. Nifty 50 is up four per cent in 2018 while mid-cap and small-cap indices are still down by 12.3 per cent and 14.6 per cent, respectively, in 2018. However, in the last one year, Nifty 50 is up by 12 per cent while mid-cap and small-cap indices are five per cent and four per cent, respectively. The market was under pressure due to rising crude oil prices, weakening Indian rupee against the US dollar, rising inflation, fear of subsequent interest rate hikes by the Reserve Bank of India (RBI), US Fed rate hikes, and especially the fear of a trade war, which has dampened market sentiments more than anything else. One of the main reasons for the massive carnage in mid-cap and small-cap stocks can be attributed to a slew reforms announced by SEBI. Two SEBI rules that have affected trading are: Guidelines on Mutual Funds Re-categorisation and...