Broader markets outperform; 10 Midcap stocks to buy

Benchmark indices have recovered from the lower levels and have turned choppy after the Reserve Bank of India (RBI) in its first bi-monthly monetary policy statement for 2015-16 kept the repo rate unchanged at 7.5%.

At 12:02PM, the 30-share Sensex was down 18 points at 28,486 after hitting an intra- high of 28,641 while the 50-share Nifty was down 8 points at 8,652 after touching a high of 8,694 in early trades.

The broader markets are, however, outperforming the benchmark indices. The BSE Mid-cap index has gained 0.42% or 10,915.71 and the Small-cap index is up 0.58% at 11,364.83.

The overall breadth of the BSE midcap remains positive as 141 stocks are advancing while 121 are declining.

Among the key mid-cap gainers, MMTC has rallied 7% to Rs 53.80 on the BSE after the state-owned company said it has received orders for import of steam coal from Coal India (CIL) and Andhra Pradesh Power Development Company Limited for about 2.35 million metric tonnes (MMT) for supply during the financial year 2015-16 (FY16).

Shares of Marico Kaya Enterprises has zoomed 18% to Rs 1,989 on the National Stock Exchange (NSE) on back of heavy volumes.

Insecticides (India) are up nearly 8% after the board of directors fixed April 17, 2015 as the record date for eligibility of bonus shares.

Shares of TVS Electronics has surged 10% to Rs 47.65 on the BSE after the company announced that it will enter into agreements and business arrangements with mobile manufacturers or wholesale distributors.

Hindustan Construction Company (HCC) has moved higher by 7% to Rs 35.85 on the National Stock Exchange (NSE) after the company said its board had decided to open the qualified institutional placement (QIP) issue on 6 April.

However, Unitech, Indiabulls Real Estate, Sobha Developers, DLF, Prestige Estates and Housing Development & Infrastructure (HDIL) from the real estate sector are down more than 2% each.

STOCKS TO WATCH

K K Mital, Vice President, Venus India Asset Finance says: “Going forward valuation of PSU banking shares and NBFC look promising. From the housing segment, Bajaj Finance Services, Dewan Housing, L&T Finance, IDFC are currently on our radar. After some more correction, the PSU banking shares like Bank of India, Canara Bank, PNB and SBI will be attractive. "

K.Subramanyam, Co-Head Equity Advisory, Altamount Capital adds," Investors could look at the undervalued and under-owned sectors and adopt a buy-on-dips strategy ahead of March quarter earnings which would be the main trigger.  However, it is better to stay away from the rate-sensitive sectors. Banking sector will remain under pressure as of now and one should pick up some stocks on further correction. We are bullish on Gujarat Pipavav, Gateway Distriparks (GDL) and Gujarat Gas. “