"We are seeing a mean reversion phenomenon in the markets where the mid- and small-cap indices both peaked in October and are now experiencing a correction at a rate faster than the Nifty" said Deepak Jasani, head of retail research at HDFC Securities. "Investors display a sentiment of risk aversion and are not willing to wait longer, and hence are pulling out of the market booking profits wherever available or cutting losses."
After 6 months of relentless rally, mid-cap stocks are witnessing some correction. Except for one trading session in the month of September. The correction even in mid-cap has not been very sharp or broad based. At this point of time analysts are bullish on select midcap stocks, ones which have seen their score improving. Stocks from sectors like railways, construction and consumer electrical are on the list. ET screener powered by Refinitiv’s Stock Report Plus applies different algorithms & filters to all BSE and NSE stocks, and lists stocks which fulfill the various criteria as specified into the algorithms & filters to find those which might help navigate the stock market.
While the persisting risks of global economic slowdown, higher interest rates and sticky inflation keep the markets worried, fresh geopolitical concerns have added to the worries. However, experts remain bullish on Indian market for long term.
"The second half of the year is usually very important from the viewpoint of the overall economy because the second half is more like 40-60. The second half of the year is much bigger. That is one part of it. Secondly, the capex momentum, I would say, particularly from the government side, in the first half has been practically good. Maybe because we are approaching election year. So there might have been some preponement of capex."
KIE removed Samvardhana Motherson from its recommended portfolio, while adding Cummins India and Colgate Palmolive instead. That said, KIE remains optimistic about Samvardhana Mothersons fundamentals and long-term prospects even as it sees near-term headwinds from global growth challenges.