INSUBCONTINENT EXCLUSIVE:
Midcaps are trying all they can to get back their mojo on Dalal Street again
The BSE Midcap index is looking to outpace benchmark Sensex in August for the first time in six months
It rallied 4.10 per cent on a month-to-date basis till August 28 while the 30-share Sensex jumped 3.40 per cent during the same period
On the other hand, the BSE Smallcap index advanced 2.80 per cent this month
Market analysts believe that the momentum is likely to continue
Sandip Sabharwal of asksandipsabharwal.com in tweet said, “A major shift in action in the markets towards midcaps likely from here till
Watch on.”
Girish Nadkarni, MD, Motilal Oswal Investment Banking, believes that the worst is definitely over in mid and smallcap space
In the midcap space, shares of Aditya Birla Fashion and Retail rallied nearly 47 per cent in August so far
It was followed by Reliance Communications (up 27.56 per cent), United Breweries (26 per cent), Page Industries (24 per cent), Apollo
Hospitals Enterprise (23 per cent), National Aluminium (22 per cent) and IDFC Bank (18 per cent).
On the other hand, Indian Bank, Castrol
India, MRF, Oberoi Realty, Mahindra Mahindra Financial Services and Emami slid 6-10 per cent this month.
On a year-to-date basis, the
midcap index is down 6.5 per cent while the Sensex rallied nearly 15 per cent till date
The smallcap index lost over 11 per cent during the same period.
“The volatility should definitely ease over the next six months because
State elections will be over
We are almost in September now
By March next year, we should have got over most of the volatility in the market
There are people who seek value and can ride out volatility
Elections are a constant process
Indian companies have grown throughout this," Nadkarni told ET
He chose to paint a bright picture
"The fall that we had seen is now stabilised
Maybe, expectations had moved up ahead of earnings, but they are getting tempered now
Demand for credit is strong
Monsoon is by and large good this year
Post-harvest, we expect demand to be strong.”
On investment perspective, Edelweiss Securities is bullish on Amara Raja Batteries with a
Brokerage firm Stewart Mackertich recommended Bharat Forge with a target price of Rs 834.
Petronet LNG (target price Rs 312), Emami (Rs
665), JSPL (Rs 327), Mindtree (Rs 1,225), Teamlease Services (Rs 3,500), MCX (Rs 1,000), RBL Bank (Rs 650) and Tata Chemicals (Rs 957) are
among the preferred midcap picks of Motilal Oswal Financial Services.
