Asian share markets are lower today as Japanese and Hong Kong shares fall. The Nikkei 225 is off 0.5% while the Hang Seng is down 0.9%. The Shanghai Composite is trading down by 0.8%. An escalating trade dispute between the United States and other leading economies battered US stocks on Monday, handing the S&P 500 and Nasdaq their steepest losses in more than two months.

Back home, India share markets opened the day on a flat note. The BSE Sensex is trading down by 9 points while the NSE Nifty is trading down by 8 points. The BSE Mid Cap index and BSE Small Cap index both opened down by 0.1%.

Sectoral indices have opened the day on a mixed note with power stocks and automobile stocks witnessing maximum selling pressure. While, FMCG stocks & IT stocks opened the day in green. The rupee is trading at 68.15 to the US$.

It’s been almost five & a half months of 2018.

While the BSE-Sensex has increased marginally so far, the mid and small cap indices have fallen between 10% and 12%.

Uncertain Times for the Benchmark Index

But that’s just the indices. Individual mid and small caps have fallen much more.

The steep fall in these indices is due to several reasons.

First, there has been some profit-booking in the mid and small cap space. After all, these indices were sharp outperformers in 2017. Second, rising crude oil prices and a falling rupee have taken a toll.

And third, there is some pressure in this space due to the re-alignment of investments by mutual fund managers prompted by the recent changes in regulation.

In such an environment, it makes sense for investors to be selective while buying stocks. Focus on value and the underlying fundamentals of the business. Then, they need not worry about the market.

In the news from the energy sector. As per an article in a leading financial daily, Oil India Limited, through its exploratory efforts has made its second Hydrocarbon Discovery in the onland KG Basin NELP VI Block in the month of May 2018 at Thanelanka-l in Andhra Pradesh.