Axis Securities expects the upcoming year to be good for equity investments, especially the midcaps, following the aggressive roadmap of reforms undertaken by the government treading fiscal prudence path.
Historically speaking, the midcap and smallcap indices have never given negative returns for two consecutive years, and they have had a dismal 2018.
Jagannadham believes buying will sustain in quality mid-caps and small-caps.
Post general election and stability in domestic market capex cycle can return. This is likely to be supported by reduction in interest rate, market expects further 50bps reduction in repo rate.
The Q2FY19 earnings season so far has been in line with the expectations. Strong results declared by IT companies, upbeat numbers from RIL and robust growth reported by the FMCG companies are indicative of sustained demand environment.
Axis Direct highlights how the year has been a volatile one, with US-China trade tensions, rising crude prices, depreciating rupee, and debt market liquidity crisis dominating cues that are responsible for a correction in the market
Commodity prices rallied sharply between February and May 2018, which was beneficial to companies which are directly linked with like metals and select oil stocks, but falling prices is generally good for companies which use these commodities as their raw material.
India’s plastics industry is one of the biggest in the world. Industry volumes are estimated at 16MMTPA (in FY17), with market size at Rs 1.8 lakh crore.
Auto companies like Hero MotoCorp, M&M and Escorts also highlighted rural growth recovery. India Inc. expects the demand trends to strengthen as we move into 2HFY18.
Traders might have to brace for tough days ahead of expiry on Thursday but any dips are a welcome opportunity for investors to go shopping for their favourite stocks
The approach of investing towards small to midcap in a scenario where the market is trading at record highs should be based on core fundamentals and not momentum in the stocks.
Mehraboon Irani of Nirmal Bang Securities likes Cosmo Films, Mold-Tek Packaging and Dalmia Sugar.
According to Parag Thakkar of HDFC Securities, one can buy Mold-Tek Packaging.