Rally in mid-cap stocks can last, says Deutsche Bank

Thu Mar 27, 2014 9:57am IST

A man looks at a screen across the road displaying the Sensex on the facade of the Bombay Stock Exchange (BSE) building in Mumbai February 6, 2014. REUTERS/Mansi Thapliyal/Files

A man looks at a screen across the road displaying the Sensex on the facade of the Bombay Stock Exchange (BSE) building in Mumbai February 6, 2014.

Credit: Reuters/Mansi Thapliyal/Files

Related Topics

Stocks

   

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)

FILED UNDER:
  • Most Popular
  • Most Shared

DEFENCE

REUTERS SHOWCASE

Power Theft

Power Theft

India to invest $4 billion to tackle power theft  Full Article 

Debt Funds

Debt Funds

India monitors foreign flows into debt funds, may tighten rules  Full Article 

Bulgari Back in India

Bulgari Back in India

CEO: we shouldn’t have left India so we’re back  Full Article 

 Hindu "Modi-fication"

Hindu "Modi-fication"

Fears grow about Hindu "Modi-fication" of education  Full Article 

Weak Credit

Weak Credit

Hard to hit tax revenue target, credit weak - Jaitley  Full Article 

China Rate Cut

China Rate Cut

China surprises with interest rate cut to spur growth  Full Article 

Gold Imports

Gold Imports

RBI cautious on response to gold import surge  Full Article 

Economic Corridor

Economic Corridor

China commits $45.6 billion for economic corridor with Pakistan  Full Article 

Overseas Funds

Overseas Funds

RBI says overseas borrowed funds can be parked with banks in India  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage