investor sentiment: Stock price bottoms look elusive even with decline in risk appetite
Mumbai: Investors’ risk appetite for Indian stocks is the lowest in eight months.
The Advance Decline Ratio (ADR), a widely watched indicator of investor sentiment, is at a daily average of 32% in November. Though similar to the readings in October, the ratio is lower compared to 47% in September and 51% in August.
A declining ADR means more stocks are falling against the gainers and points to a weakening market.
“The declining ADR ratio points to the loss of risk appetite of investors as they cut bets in the broader market, turn conservative and gravitate towards low volatility and quality stocks,” said Naveen Kulkarni, CIO, Axis Securities.
Benchmark indices – Sensex and Nifty – are almost 10% down from their peaks made on September 27,…
