Interest in mid-caps on the rise: analysts

But buying limited to stocks in PSU banks, power, real estate, cap goods

With markets having seemingly attained some stability, participants observe a gradual rise buying interest in the mid-cap segment of stocks. However, the interest is restricted to select stocks in the PSU banking, power ancillaries, capital goods and the real estate space, they added.  

 

“In the past two weeks or so, very clearly we have seen momentum building in the mid and small-cap sector. A lot of HNI smart money has found its way into this segment,” said Amish Munshi, senior fund manager and head of research – equities, Tata Asset Management.

 

The BSE Sensex on Friday closed at 20,882 while the NSE Nifty closed at 6,189.  Since the beginning of the month, the Sensex has risen by over 7% while the BSE mid-cap index has risen by about 5%.

 

“For buying interest in mid-cap stocks to sustain requires a lot of steady market movement. If the market continues to hold at these levels, we could possibly see some rise in select mid-cap stocks,” said Dilip Bhat, joint managing director, Prabhudas Lilladher.

 

However, some sections of the market believe that this interest is short-lived and does not necessarily indicate revival of interest among investors, other than the large institutions.