Valuations have been comfortable, but margins have been declining in some of the key tier-one IT players.
10-year govt bond yield signalling that there is risk aversion in the private bonds.
At this point, we are looking at a revival in capital expenditure, capital goods: Deepak Shenoy
"Flows in India will come about if the growth outlook for India improves meaningfully."
A few felt there was value emerging in select stocks, and bottom up approach was the way out.
IT which was doing reasonably well, now seems to be in trouble after the Budget.
The Budget has got lots of incremental good things but no big bang mega announcement.
Ecosystem is turning conducive for small and midcaps, says Kotak AMC MD.
The broader indices have bounced back sharply after falling badly several times in the past.
An IT firm rose as much as 142 per cent till June 28 from December 31 last year.
Returns from the stock market are directly proportional to the risk taken by investors.
“We are positive on both the retail as well as the corporate-oriented private sector banks.”
This theme is widely looked upon as a favourite for the next five years.
Shorter-term events can keep the market volatile, says the Avendus Capital Co-CEO.
Brokerage HDFC Securities has joined a growing chorus to invest in smaller stocks.
Midcap and smallcap funds have not done well in last two to three years.
Smallcap funds or midcap funds are not meant for all investors, says Value Research CEO.
In the midcap space, stocks are still trading up to 83 per cent lower from their 52-week highs.
BSE Midcap index is down 16 since Jan 2018 against 16 per cent rise in Sensex.
The latest new buzz on Dalal Street is about an eminent ‘midcap rally.’
“Only when the tide goes out, do you discover who’s been swimming naked,” said Buffett.
Midcap and smallcap indices had soared over 160 per cent during January 2014-2018.
Any bounce in the market would be led by larger names rather than midcaps.
The basic premise is the biggest businesses are better equipped to tackle turmoil better.
Some see a surge in midcaps as an initial signal of a pre-election rally.
Largecap is generally a more defensive theme, says CIO of ICICI Prudential AMC.
The flight toward quality last year caused midcaps to significantly trail the largecaps.
Midcaps and smallcaps had seen a multi-year rally till early 2018 from September 2013.
It is a great time for bottom-up stock picking, says Pankaj Tibrewal, Kotak Mutual Fund.
A rally in select midcap and smallcap stocks has improved market breadth.
Preference is given to Axis because of the focus towards growth rather than sustenance.
Post 2013, midcap and smallcap indices rallied 54.7% and 69.2%, respectively,
These investors believe that market will continue to throw up decent opportunities in coming days.
The midcap index corrected from a high of 21,840.8 this year to a low of 17,700.9.
Over a dozen stocks have seen a sharp jump in their deliverable volumes in the past three trading sessions.
Analysts say growth outlook for this sector continues to be robust.
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