Bhavin Shah of Sameeksha Capital discusses the economy s support for small and midcap stocks, opportunities in large, mid, smallcaps, manufacturing, chemical sector recovery, and investments in financial and digital consumption themes.
Chakri Lokapriya anticipates a strong year with robust fundamentals in new sectors. Smallcap index saw a 70% return. Focus on investors, traders, NBFCs, auto sector players like Maruti and TVS Motors, and companies like Shriram Finance, SBI, VIP and Safari. Also, Lokapriya says we will continue to hold on to Indian Hotels, Chalet Hotels, Lemon Tree, Thomas Cook.
In a period where small-cap stocks underperformed significantly, leading to a situation where large investors were calculating their losses in their small-cap holdings, there would be a group of steadfast enthusiasts who continue to see potential in small caps. Investing in these stocks, even amidst turmoil, can be sensible for those prepared to maintain their investment for three to five years. However, it s crucial to recognize the distinction between high-quality and poor-quality businesses across the small, mid, and large-cap spectrums, as well as the difference between the intrinsic value of a stock and the overall value of the company. Certain niche small businesses may still generate significant returns over time if they are held long enough. On the other hand, if one s approach to small-cap investments is merely based on the absolute value of a stock with hopes of a tenfold increase, then it s a misconception. Stock market investing, whether in small, mid, or large caps, should
Sonam Srivastava says investors should adopt a cautious, value-oriented approach post-stress test results. The emphasis is on strong fundamentals, avoiding overheated valuations, and closely monitoring holdings for potential risks can benefit stability within the mid- and small-cap segments. She says: "Investors should carefully analyze the financial health and future prospects of companies inthis segment before making investment decisions."
Market regulators express concern over valuations from a strong bull run, predicting time correction and shift to reasonable valuations. SEBI s action on international ETFs aims to manage currency stability, reflecting a cautious market approach.Rishabh Goel says with the US Fed maintaining three rate cut expectations, expects FII flows to help further drive largecap performance.