Thread by @KA_charts

What will be impact on earnings of mid cap and small cap companies after sebi order?

Okay so few people will start judging without understanding why i asked? So i will ask webinar members to tell what i explained to them few min back on this sebi move..

Price in stock market moves basically due to two things
A) liquidity push
B) earning push
To make it more easy i will use this formulae which most of you are aware of -
Price of asset= pe*earnings.
So price can increase by either increase in pe or earnings.
Pe is nothing but

All other things except earnings like sentiment(news), liquidity push.
Now earnings- companies net profit we call earnings.
Now before going further i will quote this line -
"In the short run, the market is a voting machine but in the long run, it is a weighing machine"

By Benjamin Graham.
Also i will put a video

Which means in short run price of asset can go anywhere based on news liquidity push or rumours but in long run it will only and only evaluated based on their earnings, if earnings r good no matter what bad news

Comes price will come up eventually in long run, if news is very good and there is no earning, upmove remains short lived - we have many examples like Adag group (price surged many times 100-300%) jet airways (150+% in one day) most imp if u remember in 2017 oct government

Announced psu recapitalization and price of all stocks surged but what happened after few days later can be checked on charts.
So my point is as an investor u need not to get over excited with such news, focus on earnings and pick ur companies irrespective of which mutual fund

Is dumping what or buying what.
However if u r trader - only one thing, why u need news if u have charts with u.

when u r confused about what to buy what not to always go with index.
u dont need to search thousands of stock and keep asking everyone what to buy what not to.