The week closed on a muted note for benchmark indices but these top ten stocks gave up to 80 percent return in a week.
By Kshitij Anand
The Nifty closed marginally higher in the truncated week weighed down by geopolitical concerns but there was a lot of action in the small and midcap space.
The week closed on a muted note for benchmark indices but these top ten stocks gave up to 80 percent return in a week. This is a type of return which one expects in a year.
“The velocity of the market is slowing down with small movements occurring on each successive up days. This is an indication of fatigue in the market,” Jimeet Modi, CEO, SAMCO Securities told Moneycontrol.com.
“But, considering the longer term bull market cycle that Indian market is currently witnessing, these bouts of weakness, slow movements and stock specific movements shall continue to play out,” he said.
In the S&P BSE 500 index stocks rose up to 24 percent in the last one week which includes names like GIC Housing Finance which is up 24 percent, followed by Future Consumer, Navkar Corporation, Adani Transmission, Sobha, Westlife Development, Godrej Properties, Magma Fincorp, Majesco, and Dishman Pharma.
In the midcap space, Adani Power rose nearly 10 percent in the last one week, followed by SAIL, Jindal Steel, JSW Steel, Adani Enterprises, Godrej Industries, Wockhardt, Reliance Communications, Bharat Forge, 3M India, and Oberoi Realty.
The S&P BSE midcap index slipped marginally by 0.3 percent compared to 0.7 percent fall in the S&P BSE Sensex. It has shown resilience throughout the week.
On a trailing basis, currently the BSE midcap index is trading at 31x PE and Sensex is trading at 22.98x PE, which is higher compared to the historical average. However, most experts expect that the midcap stocks to continue to outperform.
“The Nifty Midcap 50 Index has seen a gradual re-rating in valuations from its average range of 18-20X (P/E) prior to 2015 to an average of 35-36x in 2016 and 34x currently,” Alok Ranjan, Head of Research, Way2Wealth Brokers Pvt. Ltd told Moneycontrol.com.“This move has been on account of higher investor interest in this space (hence more funds flow moving in) and the expectation of higher earnings growth coming in from this space. We believe the rally will continue in quality midcaps,” he said.