The recent stock market downturn has sent smallcap and microcap indices tumbling nearly 22% from their peaks, triggering panic among retail investors. However, amidst this market turmoil, a strong insider confidence trend is emerging—company promoters are aggressively buying shares in their own businesses.
Promoters’ Buying Spree: A Vote of Confidence?
According to Prime Database, promoters have invested over ₹4,000 crore in their own stocks in February alone, capitalizing on the sharp correction in mid and smallcap stocks. Several companies have seen their stock prices fall by 20-30% or more from their highs, creating what could be a once-in-a-cycle buying opportunity.
Top Companies Witnessing Strong Promoter Buying:
✔ Sobha Ltd – Promoters bought 6.88 million shares worth ₹568.56 crore
✔ Bajaj Healthcare – 2.16 million shares acquired for ₹142.80 crore
✔ Lloyds Metals & Energy, Quess Corp, Sigachi Industries, and XPRO India – Among other companies where promoters have stepped in aggressively.
What Does This Mean for Investors?
✔ Insider Confidence: Promoters have the best understanding of their company’s future. Their buying activity signals strong conviction in their business fundamentals.
✔ Valuation Opportunity: Many quality stocks are trading at discounted prices, potentially offering long-term investors an attractive entry point.
✔ Long-Term Growth Potential: Market downturns often create opportunities for wealth creation, provided investors pick fundamentally strong stocks.
How Can You Benefit?
At Riddhi Siddhi Share Brokers, we analyze market trends, track insider activity, and help investors navigate volatility with confidence. Whether you’re looking for expert insights or personalized investment strategies, our team is here to guide you.
👉 Connect with us today to explore how you can capitalize on these emerging opportunities.
📞 Call: +91 9137969859
🌐 Visit: www.riddhisiddhisharebrokers.com
📢 Disclaimer:
Investing in stock markets involves risk. Past performance is not indicative of future results. This article is for informational purposes only and should not be considered as investment advice. Please consult a registered financial advisor before making any investment decisions.