Web Exclusive: Ten mid-cap & small-cap stocks one can buy

BSE mid-cap index up 0.16% to 6,740 levels, while the small-cap index has surged 0.62%, or 41 points, to 6,691 levels

Most Asian shares rose to their highest since August 2011 on Wednesday after an improving global economic outlook boosted world equities overnight, encouraging investors to take on risk.

A rub-off effect was seen in the Indian markets during early trades. However, markets have trimmed early gains and are trading in a tight range with positive bias on account of profit booking.

The broader markets are, however, performing much better than the benchmark indices with the BSE mid-cap index advancing 0.16% to 6,740 levels, while the small-cap index has surged 0.62%, or 41 points, to 6,691 levels.

Jyothy Laboratories is the top Midcap gainer, up over 5%. KSK Energy Ventures, Persistent Systems, Bombay Dyeing & Manufacturing Company, WABCO India, Ybrant Digital, Suzlon Energy, Birla Corporation, Monnet Ispat & Energy and J K Cements are also buzzing in trades, all gaining between 2-5%.

Lanco Infratech gained over 2% at Rs 12.10 on news that the company has reached out to its Malaysian partner, Genting, to buy stake in three of its power plants.

On the losing side, Welspun Corp has slumped 3% on news that the NSE will exclude the stock from futures & options trading on the bourses.

Shares of newly listed V-Mart Retail slipped 5% after debuting at a premium of 2.86% to the initial public offer price of Rs 210, on the BSE.

The overall breadth of the BSE mid-cap index remains positive as 132 stocks are advancing while 116 are declining.

According to Shshank Mehta, Derivatives Strategist, Shah Investor's Home Ltd, “Jet Airways is no longer in F&O space; however it is currently trading weak and traders should aviod creating long positions in the counter.

Suzlon Energy is trading strong at current levels; however this is the last Series for this counter and will no longer be available in the F&O segment decreasing activity in Stock Options and hence lowering visibility in data. However, looking at the price volume data of SUZLON the counter may continue momentum. I do not track Lanco and 3M INDIA closely; so it may not be prudent to comment on it.”

Adds Ravi Shenoy, Asst Vice President (Mid-cap Research), Motilal Oswal Securities, "Two smallcap stocks that we recommend to buy from medium term perspective are Suprajit Engineering and Action Construction with a price target of Rs 45 and Rs 20, respectively. Our all time favorite DB Corp and Bajaj Finance will give good returns.

A K Prabhakar, Senior Vice President - Equity Research, Anand Rathi Securities says “Mindtree, M&M Finance, Karur Vysya Bank, Everest Inds, Cummins and Bajaj Corp  are few mid cap picks which interest us for medium to long term”.