Positive on mid-cap techies: Taj Capital

33001 Investors following IVRCL. Share this News with them.

0

Like this story, share it with millions of investors on M3

Positive on mid-cap techies: Taj Capital

Sanjay Jain, Taj Capital comments on the midcap scenario. Jain states that they hold a positive view on mid-cap technology stocks.

Post your opinion here

 

0

Tweet

Share on Tumblr

Excerpts from Closing Bell on CNBC-TV18 Watch the full show » RELATED NEWS Equity calls: Vijay, Choudhury, Gujral Equity calls: Gaba, Jain, Malkani ALSO READ See what other experts are saying about markets See what FIIs are saying about the markets See what Udayan Mukherjee is saying about the markets Nifty BSE | NSE 01/06/12 Are Mutual Funds betting on Nifty? Other Stocks in this news Jyoti Structures | Kalpataru Power Transmission | MphasiS | NIIT Technologies | RPG Transmission |

Sanjay Jain, Taj Capital comments on the mid-cap scenario. Jain states that they hold a positive view on mid-cap technology stocks.

As far as the financial or the banking sector is concerned he feels that the undertone in the sector is very good.

Jain opines that the transmission companies will continue to see a very good ramp up. The companies which may benefit, according to Jain, are Kalpataru, IVRCL and RPG Transmision.

Excerpts from CNBC-TV18's exclusive interview with Sanjay Jain:

Q: How have you read the mid-cap outperformance for the last couple of days?

A: I think with the frontline stocks already having a run ahead of the results, there is still a value play in the midcaps and investors finding the Group A stocks expensive, are looking for secondline plays in Group B and in the smallcaps.

Q: The standout performance this week is from mid-cap technology. Anything in specific that you cover there and are recommending to your clients?

A: While I would not like to give any specific mention of stocks, I would say that mid-cap technology is something that we hold a very positive view on. With all the topline software stocks already commanding such high valuations and showing such high performance year on year and QoQ, we have seen the follow up action coming in the mid-cap technology stocks. 

Today we have already seen NIIT Technologies results, where there has been an expansion of margins as well as a substantial topline growth. So I would generally be positive on NIIT Technology and Mphasis-BFL .

Also I may mentioned that in the mid-cap technology stocks in certain stocks there might be some strategic plays in the offering and that may also have a positive effect on the valuations going forward.

Q: What do you like from the financials or the banking space?

A: I think that the undertone in the sector is very good but we have to also see that a lot of mid-cap banks and also the frontline banks have already run way ahead in the last couple of weeks. So the difficulty in this sector is that increasingly it is very difficult to find value plays. So I would say that on a larger retail and a domestic consumption theme, one should seek indirect plays preferably in the mid-caps. There are some interesting themes out there, which are playing out.

Q: There has been some signinficnat announcement in the power transmission space coming from the government and we did see some kind of a run up in the RPG transmissions , results was one reason, but we saw Jyoti Structures , we saw a whole host of transmission sector companies do well, anything in power space you will watch out for?

A: I think that these transmission companies, power equipment companies will continue to see very good ramp up in terms of number's performance in the next couple of years and I think that the names you have mentioned definitely should be benefiting in that regard, I may add names like Kalpataru and IVRCL etc, so these are larger sectoral themes, which are playing out because of the big investments, which the government is outlaying in for the power sector.