The markets lost about 30% in just 15 trading sessions and most mutual funds had recorded similar losses in their NAVs with some mutual funds known for their aggressive investing behavior recording upto 46% loss in their NAVs.

Though the fears of downturn in US are yet far from over, Mutual with Diversified portfolios have registered strong gains. However, some sector specific funds are yet to recoup losses. Out of sector specific funds, pharma, auto, power, banking and tech sector have registered modest gains.

As the market registered some gains in past 15 days, Tax Saving and debt funds too registered gains. However Mid-Cap stocks and mutual funds with larger allocation on mid-caps have not registered any noticeable gains.

This is because most retail investors are yet to gain confidence in investing in market. As usual I continue to hold my bias against investing in mid cap shares. Most of these shares are thinly traded shares with modest market caps. Most cases of their having sizable trading volumes, these shares usually fall in hands of scrupulous brokers who manipulate markets for their short term gains.

Outlook for the market, to my mind, does not appear very optimistic in medium term. My reasons for saying so are for one; the clarity on US economy is yet to come and present signals are not healthy enough and two; there are issues worth more than Rs 65000 croores lined up, waiting for markets to recover.

These issues would drain out the liquidity of the markets, sending it for another round of collapse.

Indian markets collapsed after Reliance Petro issue and after recent Reliance Power issue as well. Both falls should be a bit more than a coincidence.