Midcap It News Today

Bhasin advises caution in markets due to potential US data impact and advises profit-taking. Ranks private banks and emphasizes PSU stocks for performance. Prefers BHEL, Ircon, LTIM, HCL Tech, and Wipro for investment. Bhasin says: "The faint-hearted or the larger-term retail should keep their SIPs going but take some money off the table whenever there is leverage."

Gautam Duggad, Head of Research at Motilal Oswal, discusses the performance and outlook of the midcap IT sector, the growth and normalization trends in the auto sector, and the challenges and expectations in the IT sector. The investment strategy focuses on large cap IT stocks like HCL Tech. In auto, the best performing segment will be two wheeler in so far as volumes are concerned.

Vinit Sambre believes that the IT sector is a decent sector to be in due to cash flow generation, dividend payouts, and long-term growth opportunities. He emphasizes the importance of traditional IT companies embracing the generative AI space, which is expected to grow. Sambre acknowledges the interest rates globally and the potential impact on the economy, which is driving investors to look ahead. In terms of IT investment, Sambre remains equal to underweight but highlights the positive busines...

Even as the Nifty IT index has marginally underperformed the broader Nifty50 on three, six and 12-month basis, the midcap and smallcap IT stocks have outrun all indices, Nuvama said, adding that some quality tier-2 IT firms delivered "eye-popping returns".

Ashutosh Sharma of Forrester Research India says he doesnt anticipate a positive shift in the demand environment until at least Q2FY25, given the  uncertainty that has crept in across global markets  

“In the capital goods space, Cummins, Thermax, Bharat Forge and L&T are four of the choicest names. You can add an ABB. Three insurance names – SBI Life, ICICI Pru, and HDFC Life – in tandem could be very good wealth creators over a period of time and this distribution channel, particularly brokers, exchanges, insurance and the AMCs are a very good long-term bet.”

“In India the largecaps – Nifty, Sensex can compound 12% longer term. I do not see a challenge in that. Markets are now close to historic multiples, slightly higher but I think there are three reasons why Indian multiples may settle higher than the past – faster growth, lower cost of capital and lower volatility.”

“As the wedding season sets in, the hotel industry is going through the roof. As an ancillary to that, car sales will pick up. Maruti becomes a very good play. Ashok Leyland is the third largest bus maker in the world and is only gaining traction. So, autos and entertainment is something which you can easily play. One can add some of the other consumer discretionaries.”

“Excesses will not sustain in a market because markets may be imperfect over short to medium periods and medium period can be even three-four years, but in the long term, market irons out any imperfections. So, we are in that phase and today, sectors are coming closer and closer to their real valuations in largecaps.”

“I am looking for a sparkling Diwali, and I would say build up your portfolio. Do not look at the next three weeks, look at the next three years. There can be a little uncertainty when the elections come, but we still think that we will go to new highs by the end of the year.”