Why are Reliance Industries and HDFC Bank getting mauled by bears these days? Here’s looking beyond the obvious

Some market moves appear to stand the basic logic of investing on its head. The key word here is “appear”. Sometimes not-so-obvious things are responsible for the short-term movement of stock prices. And because they are not obvious, the street doesn’t immediately recognize them as the real reason. But these underlying reasons need to be understood for decisions to be taken in the right context. Why, for instance, did Reliance Industries and HDFC Bank stocks see sharp cuts these past few sessions (though they were up marginally on Tuesday)? Nothing adverse has happened in the sectors in which they operate. Nor has there been any trouble at these companies individually. So, is there something more to it? Yes. They were sold by AMCs that have floated India-focused funds in a low-tax regime country in Europe. The big question: Is this decline an opportunity?