Why buying on dips is not always sound investment strategy
A little under a month back, on September 26, 2024, the BSE Sensex, India’s most popular stock market index, peaked at an all-time high close of around 85,836 points. It has fallen 6.5% since then and closed at around 80,221 points as of October 22, 2024.
In comparison, the NSE 500 Total Returns Index, which is a much broader representation of the Indian stock market and takes dividends given by companies into account as well while calculating returns, has fallen by 6.9% during the same period, suggesting that the small and midcap stocks on average have fallen much more than the large-cap ones.
Now, this has led to two things in the stock market. First, it has got the investors who have entered the stock market only in the last few…
