Cash stocks crater
Nearly 95% of 'cash' stocks are down between 20%–90% from their highs—many retail investors have paused SIPs and rotated into bank FDs, PPF and precious metals, with salaried investors favoring PPF over ELSS for tax savings ( ). Valuations across large, mid and small caps have cooled below historical P/E averages, which some commentators say creates entry points for long‑term, diversified investors (x.com).
Several mid‑cap and small‑cap names — including Trent, Dixon Technologies, Cochin Shipyard and Macrotech Developers — were flagged on market grapevine as sitting in multi‑year drawdowns amid the recent sell‑off. (moneytimes.in) Foreign portfolio investors (FPIs) turned heavy sellers in March, pulling roughly ₹45,000–₹52,700 crore out in the opening sessions and recording several multi‑thousand‑crore single‑day exits during the month. (businesstoday.in) Mutual‑fund SIP activity has shown strain: industry data and coverage note monthly SIP stoppages in the tens of lakhs and a stoppage ratio that has repeatedly climbed above 75% in recent months. (news18.com) Banks revised fixed‑deposit pricing in March, with some lenders offering up to about 8.10% for select tenures, while PPF continues to carry a government‑backed 7.1% rate for Q4 FY2025‑26 and small‑savings schemes reported a jump in participation, according to ICRA/Angel One. (economictimes.indiatimes.com) Precious‑metal demand has been exceptional: gold and silver hit fresh highs after outsized 2025 rallies (gold >70% and silver >150% year‑on‑year for parts of 2025), and analysts flagged record ETF and central‑bank buying that fed retail reallocation into bullion. (business-standard.com) Valuation metrics show room for debate — the NIFTY 50 trailing PE sat near ~20.6 on March 17, 2026 versus medium/long‑term averages of about 21.0/22.1, and brokers from Equirus to Allianz have said the recent correction has reduced valuation pressure enough to present selective entry opportunities while warning mid/small caps remain vulnerable pending an earnings recovery. (finlive.in)
