MFs see interesting stories in midcaps in Nov

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MFs see interesting stories in midcaps in Nov

Midcaps seem to be coming back with a bang. According to experts, midcaps had not contributed in the 13k rally, But the BSE midcap index shows a different picture now.

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Midcaps seem to be coming back with a bang. According to experts, midcaps had not contributed in the 13k rally, But the BSE midcap index shows a different picture now. The index has outperformed the Sensex in November.

In November, Sensex has given a percentage return of 4.48% and the midcap index 5.07%. Infact, the outperformance is entirely based on the percentage gained in the last week of November. Between November 27-30, the Sensex gave a negative return of 0.56%, while the midcap index gave a positive return of 0.62%.

The positive uptrend is also indicated by the fact that FIIs and MFs have been putting in money in midcap companies. In November, the maximum number of companies where MFs had put their bet on belonged to the midcap category.

On November 22, Templeton MF Prima Fund, bought 50,000 shares of Simplex Infrastructure at Rs 402.5. Again on the 29th, stocks of this company was bought by Templeton Mutual Fund. It bought 3241350 shares at Rs 404.97.

Prithvi Info , a company with a market capitalization of Rs 681.07 crore, was another active company in terms of bulk deals struck by MFs in November. On Nov 22, 385171 shares of the company was bought by Sundaram Mutual Fund at Rs 355. On the NSE on Nov 23, the company was eyed by Heritage Asset Management Inc A, when it bought 135000 shares at Rs 392.13. Again on Nov 24, the company's shares were bought by Prudential ICICI Asset Management. They bought 1,88,000 shares at Rs 377.52.

Bulk deals list on the BSE website also has companies like Champagne Indage and Lok Housing that have been active in November in terms of investors picking up shares.

Shares of Champagne Indage was bought on Nov 22 and Nov 20. On Nov 20, around 74587 shares were bought at a traded price of Rs 439.18 and on Nov 22, 75000 shares were picked up at Rs 482.6.

Lok Housing also saw its shares being picked up on Nov 31, Nov 27, Nov 14 and Nov 13. In total around 14,41,476 shares were bought in the range of Rs 339-386.97.

According to experts, midcap category has lot of stocks that are looking good at current valuations and hence are good investment opportunities.

Sumit Rohra, Antique Stock Broking, said, "Midcap sector has started participating and will continue to participate because valauations are very cheap and there is potential in these companies. Micro Tech is a classic example of that. The stock was languishing for nearly 3-4 weeks and from Rs 220 it went up to Rs 300 in just four days."

Marketmen feel that since the index has not rallied the way the others have, therefore one will see smart money moving into midcaps.