Last one month has seen some glimpses of what is called co,rrection. Is the correction, one of the many that the market has seen in the last two years, or there is more to it, that would get clearer when in the early part of December state election results come in. Meanwhile analysts are bullish on select mid-caps. Stocks from sectors like small finance banks, oil and diagnostic are on the list. ET screener powered by Refinitiv’s Stock Report Plus applies different algorithms & filters to all BSE and NSE stocks, and lists stocks that fulfill the various criteria as specified into the algorithms & filters to find those which might help navigate the stock market.
If you are thinking that what you saw in markets yesterday, especially in the mid-cap segment, has happened for the first time. No, it was not the first time, in the second week of September, exactly a similar thing had happened. Mid-cap index was down much more as compared to Nifty and market breadth in the mid-cap segment was extremely poor, more than 95 percent of the stocks were trading with large cuts. Yesterday also a similar thing happened. Now there is another side to this, between the second week of September and yesterday, there were mid-cap stocks which gained and formed new highs. So, rather than broadly brushing with the word " mid-cap", look at each company separately and be ready to see your investments not work well for some time, but then who said wealth is built overnight.
Despite the fact the valuations are high and there are many headwinds both in terms of geopolitical risk and central banks policy making, the correction which is taking place in the market is not of the same magnitude which in the past such mews flow has brought. So at one level while the correction is taking place but at the same time, the under current is still that of hope. In such times of divergence, it would be better to add the words like portfolio rejig, caution, fundamentals and valuations to one’s thought process while buying stocks. Refinitiv’s Stock Report Plus which lists stocks with high upside potential over the next 12 months, having an average recommendation rating of “buy” or "strong buy".
After 6 months of relentless rally, mid-cap stocks are witnessing some correction. Will this correction last longer would depend on two things, first earnings in this space and second foreign institutional investor ( FII) flows over next two months. At this point of time analysts are bullish on select midcap stocks, ones which have seen their score improving. Stocks from sectors like sugar, healthcare and logistics are on the list. ET screener powered by Refinitiv’s Stock Report Plus applies different algorithms & filters to all BSE and NSE stocks, and lists stocks which fulfill the various criteria as specified into the algorithms & filters to find those which might help navigate the stock market.