A Brief summary of the Micro/Small/Midcap Carnage

Explaining every fall or rise with a headline is a journalist’s job. Oil price movements are purely speculative on geopolitics/trading but made to sound like its a supply-and-demand issue. Even if it is, these are more near-term than long-term. Long-term there are clear signs of oil glut. I don’t know if its good for Indian equities or not, as that’s not something I can base any decision on. I know however of what companies will benefit from lower crude and how their earnings can grow through margin expansion (Specialty Chemical companies with crude as a RM for eg.) and that’s what I intend to focus on.

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