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Midcaps outdo Sensex in past 3 months: Top four stock ideas by expert

Positive momentum in midcaps helped the BSE midcap index wipe out entire losses seen in the morning trade and trade marginally higher.

Aprajita Sharma  New Delhi     Last Updated: November 9, 2015  | 18:02 IST
Midcaps outdo Sensex in past 3 months; top four stock ideas by expert
The midcap index has gained 8.12 per cent in the past year, compared with a 6.88 per cent fall in the Sensex. Photo: Reuters

Select midcap stocks were in vouge on Monday, even as the benchmark indices dropped around 2 per cent in trade on Monday.

Positive momentum in midcaps helped the BSE midcap index wipe out entire losses seen in the morning trade and trade marginally higher.

The BSE midcap index ended the day 0.42 per cent higher at 10871.75. The index had fallen nearly 2 per cent in the morning trade.

The index has also outperpofrmed the BSE Sensex in the past one year. The index has gained 8.12 per cent in the past year, compared with a 6.88 per cent fall in the Sensex.
 
Havells India, Allahabad Bank, Indian Hotels and Petronet LNG were the top gainers on the BSE Metal index and rose up to 7 per cent in today's trade.

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Ravi Shenoy, VP-Midcaps Research, Motilal Oswal Securities belives the rout in largecap oil & gas and metal stocks, owing to a slump in global commodity prices may have impacted returns on Sensex.

"The presence of oil and gas and metal stocks in the Sensex and also global cyclicals such as Tata Motors weighed on Sensex. These stocks performed badly owing to fall in commodity prices, which pushed Sensex lower," said Shenoy.

"These are all capital-intensive businesses and there are not too many midcap stocks into these space. That is also why midcap index did not go down as much as Sensex," added Shenoy.

Commenting on last three-month performance of midcap index, Shenoy said, "Performance on the midcap front has been better in terms of earnings. Looking at individual stocks, they have continue to post double digit growth numbers and a lot of them have operating and finance leverage coming into place too, whereas the numbers for the front-end stocks have been disappointing, which caused slump on the index."

Following are the top four picks by the expert with the one-year horizon:

  1. TVS Motors
  2. Can Fin Homes
  3. Eveready
  4. Dish TV

 

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