Now is the time to pick cheap mid-cap stocks (2) February 11, 2009
Posted by dhirendra1972 in Equity Analysts, Large Cap Peers, Momentum Plot.Tags: Analyst, Industry, Plot, Segment, Values
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Usually, in a bear rally, mid-cap stocks recover faster than their large cap peers. However, in any correction following a rally, these stocks equally give up their values. If one looks at the momentum plot of mid-cap stocks, the segment logs continuous gains when market sentiment is high.
According to equity analysts, there is lot of room for mid-cap stocks to recover post the rapid decline in mid-cap stock prices. The top-100 stocks (beyond Sensex 30) seem to be a good buy at current valuations. Mid-cap stocks in power & infrastructure, PSU banks, cement, agro-based industries and engineering sectors look good even now, brokers opine.
“Now is the time to pick cheap mid-cap stocks. Investors can look at most stocks in the BSE 200 bracket and select stocks in the BSE 500 segment. Investors should be cautious investing in mid-cap stocks as the segment per se will be very volatile
“The movement is mid-cap stocks will be more linked to results, announcements and industry-specific news. Investors should invest into companies that have a performance track record of 10 – 20 years. CRISIL, LIC Housing, Blue Dart and Monsanto are some of our top picks in the segment.”
Reference: economictimes
