Category Short Take

India's AI proxies, fibre, power and electronics, ran 100 to 450% on the global capex cycle. On Monday they fell with Samsung and Korea while the Nifty barely moved. A note on what these stocks actually are.

The thinking says high-flying stocks crack first in a correction. The latest fall in Indian equities says otherwise. The 240 NSE stocks that had run up the most going in had a median return of around −9.5%, almost four points shallower than the Nifty's −13.7% and shallower than every other decile.

Ratio charts have become a staple tool for traders seeking to time markets. The logic seems elegant: when gold becomes “expensive” relative to silver, or when stocks become “undervalued” compared to gold, the ratio must eventually revert to its mean.…