Rewards and risks

Picking small stocks is always difficult

The stock market has held its ground through the past several months and it is trading at all-time (closing) highs on a combination of relief and optimism. Relief because the Reserve Bank of India and the US Federal Reserve have both hit “pause” after carrying out a sequence of rate hikes. Optimism because there is a consensus that the Indian economy will grow strongly this year. Besides, China’s central bank has eased its monetary policy by cutting rates and pumping liquidity into the world’s industrial engine in a massive stimulus effort. The market has been backed quite emphatically by foreign