Rally in mid-cap stocks can last, says Deutsche Bank
Reuters Market Eye - The rally in mid cap stocks, which have risen 30 percent since August, compared with a 19 percent rise in Sensex, can extend to catch up on significant underperformance it saw in last three years versus the large caps, Deutsche Bank says.
For graphic - link.reuters.com/xab97v
"Mid cap stocks tend to rally sharply when economic growth is expected to be at an inflection point. While the jury is still out on the pace of economic recovery, we believe that growth has bottomed, currency has stabilised and the twin deficits have shown a marked improvement," Deutsche Bank said in a report on Wednesday.
The bank flags Bharat Forge (BFRG.NS), Hindustan Petroleum Corp (HPCL.NS), Jain Irrigation Systems (JAIR.NS), LIC Housing Finance (LICH.NS), Shree Cement (SHCM.NS), Shriram Transport Finance (SRTR.NS) and Yes Bank (YESB.NS) as its top mid cap picks.
(Reporting by Abhishek Vishnoi)
- Tweet this
- Share this
- Digg this
- Two Ukrainian fighter jets shot down over rebel-held territory
- South Korea ferry fugitive hid behind cabin wall, bags of cash at hand
- U.N.'s Pillay says Israel may be committing war crimes
- China's Xiaomi hopes Mi 4 smartphone can take on Apple
- TransAsia Airways plane crashes in typhoon-hit Taiwan, killing 47
India will not support a trade facilitation protocol ahead of a July 31 deadline unless its concerns about subsidies are met, two senior government officials said on Wednesday, sticking to a hard line critics say could derail a landmark global trade deal. Full Article
Bullish on Indian equities, but gains seen 'less sharp'- Goldman Sachs Full Article
Jet Airways chairman says looking to restructure debts, talking to bankers Full Article
Honda's India unit to account for 25 pct of Asia Pacific sales by March 2017 - exec Full Article