📈 WE ARE IN A BULL MARKET
We are in a bull market, and the Smallcap 250 is slowly heading towards a potential breakout above its all-time high.
But during this journey, profit booking and corrections are completely normal.
🔴 BIG RED CANDLES
When you see a big red candle in the Smallcap 250, your portfolio may also be deep red on that particular day.
After such corrections, the index can consolidate and prepare for its next upward move.
💰 HIGH-GROWTH STOCKS WILL SEE MORE PROFIT BOOKING
During a strong correction, the stocks that have run up significantly in recent months usually face the strongest profit booking.
In other words, high growth stocks can see maximum profit booking.
Dead stocks, which did not participate in the bull market, may not fall much during such corrections.
⚠️ DEAD STOCKS VS HIGH-GROWTH STOCKS
If you have high-growth stocks from emerging sectors, your portfolio may fall more during a sharp profit-booking phase.
But when the market recovers, these stocks can also recover much faster.
On the other hand, if your portfolio consists of dead or underperforming stocks, it may not fall much during the correction—but when the market starts moving strongly again, these stocks may still remain stagnant.
Therefore, the key is not simply to avoid portfolio volatility. The key is to own the right growth stocks.
📊 WE HAVE SEEN THIS BEFORE
On 22nd July, we saw strong profit booking in the Smallcap 250, and our portfolio also declined.
But within the next 15 days, the portfolio recovered strongly.
This is how a bull market generally behaves:
Rise → Profit Booking → Consolidation → Next Upmove
Such ups and downs are normal during a bull run.
🤖 AI & DATA CENTRE STOCKS
Today, AI and data-centre stocks have experienced relatively stronger profit booking because many of these stocks have already delivered substantial returns over the last 4–5 months.
Therefore, it is natural for these high-growth sectors to see greater profit booking when investors book profits.
Profit booking does not automatically mean the long-term growth story has ended.
🧠 KNOW WHAT YOU OWN
During a bull market, you will see plenty of negative news and scary narratives.
If you understand the business, industry, global economy and long-term growth drivers, temporary negative news should not easily distract you.
But investors who do not understand the businesses they own can easily panic, exit during corrections, and later regret those decisions when the market and quality growth stocks recover.
🎯 THE KEY TAKEAWAY
Don't judge a bull market by one or two red candles.
Focus on the quality and growth potential of your portfolio.
If you own emerging-sector, high-growth businesses, corrections can be painful—but the recovery can also be much faster.
The real question is:
Do you own the stocks that are participating in the new growth cycle, or are you holding dead stocks that have already lost their growth story?