Banks, energy (Reliance) and select domestic cyclicals are expected to be the major contributors to the overall index earnings over the next year.
Midcap stocks were clear winners last month, even outperforming largecaps by a huge margin, finds a report by Prabhudas Liladher. On a month-on-month as well as on a calendar year-to-date basis, the BSE Midcap Index punched above its weight, growing 6.1 percent and 20.9 percent, respectively.
One must understand the good performance in detail. If such a good performance is not consistent, then there can be trouble.
Market expert Atul Suri says technical charts indicate that the CNX Midcap index could slide all the way to 10,000 in the short term. And while the downside in the Nifty may not be as severe, there could be a rub off effect of the downtrend, Suri says
A combination of rising urban consumption, interest rate cuts and increased government spending is likely to come together to push Indian markets higher, says Nilesh Shah, Managing Director at Kotak Mahindra Asset Management Company.
With the disconnect between Indian and Chinese equities becoming stark this year – the Sensex is about flat year-to-date while the Shanghai Composite has netted about 50 percent – some analysts believe the trade is set to continue for a while.
Geoffrey Dennis of UBS feels, the outperformance of the Indian market may be coming to an end but does not expect it to underperform going ahead. At present the house is neutral on India.