Talking about this year, once again the mid-cap and small-cap segment is seeing a boom.
Midcap and Smallcap have been under performers for the last 2 years, giving great returns to investors in the year 2017. However, when we talk about this year, once again the midcap and smallcap segment is seeing a boom. Experts believe that while in 2019, largecap stocks performed well, this year a rally in midcap and smallcap is going to come. He says that along with the economy, demand will increase in the broad market. This boom can start after the budget. In this case, midcap and smallcap will get the benefit of low base. Investors should choose stocks with strong fundamentals from both these segments with the advice of experts.
Midcap stocks giving double digit returns this year
Talking about this year, the BSE Midcap index has become stronger by 2.15 percent and the Smallcap index by 4 percent. While the Sensex has gained 1.47 percent and the Nifty 50 has gained 1.32 percent. It is clear that the contribution of the broadcaster market has also been significant in the rally of the new year market. At the same time, the midcap stocks that have given double digit returns so far this year include 17% in Alchem Lab, 17% in SAIL, 13% in GMR Infra, 12% in Verok Engineering, 11% in PNB Housing Finance, Tata Global Beverages. Ramco Cement has got 10 per cent and 10 per cent returns.
Rakesh Jhunjhunwala, a stock market veteran known as Bill Bull, said in an interview to ET Now that the year 2020 will be in the name of Midcap and Smallcap. He says that the market has high expectations from the budget. After the budget, there may be a boom in the broad market. In the coming days, along with the economy, there will also be recovery in consumption, which will benefit the market.
Midcap days will return
Jagdish Thakkar, director of Fortune Fiscal, says that for the last 2 years, most of the midcap has got a negative return. However, due to the slowdown in the economy during this period, the effect of slackening demand also showed on them. There is no issue with all companies offering negative returns. Many of these companies are in a position to earn good profits. Their business is better. In such a situation, if there is a recovery in the economy, then they will get the most benefit of low base. The government has made some reforms in the past, while the market has high expectations from the upcoming budget. Some measures may be announced in the budget to boost the economy. Companies will also get the benefit of corporate tax cuts and the pressure on their profits will gradually reduce.
He says that low base does not mean betting on any stock. Now it will take some time to improve consumption. Therefore, investors should invest in strong stocks fundamentally for a long period after consulting the experts. Valuation of many strong stocks in this segment is cheaper.
Santosh Meena, Senior Analyst, Trading Bells, has advised to invest in L&T Infotech. A target of Rs 2100 has been set for the stock. The current price of the share is Rs 1822. That is, there can be a profit of Rs 278 per share.
Brokerage house Edelweiss has set a target of Rs 808 for Voltas. At the same time, brokerage house HSBC has set a target of Rs 735 for the stock. Current price can be up to Rs. 114 per share in terms of Rs. 694.
Brokerage house Motilal Oswal has set a target of Rs 224, recommending investment in auto ancillary company Exide Industries. The current price of the share is Rs 184. In this context, you can get a profit of Rs 40 per share.
(Note: We have given information here based on the report of brokerage house and expert. The market has its own risks, so be sure to consult the expert before investing.)Get Business News, Latest India News, Sports News and other Breaking News on Investment Schemes, Share Market and much more on 24 x 7 News. We are happy to provide you best news happening around