After almost a period of a month and half, the mid-cap stocks have been trying to make a comeback.If one looks at the March data for the mutual funds, it is clear that while there has been a decline in the flows going to mid-cap schemes, but it is no where to extent which was being feared when SEBI has indicated that it is slightly concerned about money coming to mid-cap scheme and hence froth building up in mid cap space. If one goes on by the market breadth, there are indications that it might be getting started once again. Keep an eye on liquidity and the market breadth in the next few sessions as that will determine what happens to mid-cap stocks in the medium term. If the market breadth stays positive then it is very likely that we might see more strength in mid-caps.
In FY24, FPIs invested heavily in capital goods, consumer services, and automobiles in India. Sectors like telecom, healthcare, and financial services also saw significant inflows, while metal & mining, oil & gas, media, and chemicals faced heavy selling.
CLSA upgraded Vedanta to buy with a Rs 390 target. Antique initiated Bharti Airtel coverage as a buy with a Rs 1505 target. Motilal Oswal started covering Kolte Patil, advising a buy with a Rs 700 target. Jefferies maintained a buy on Godrej Properties, raising target to Rs 3175.
Q4 earnings preview indicates private banks may outperform public sector lenders due to tight liquidity. JM Financial expects 5% earnings growth, while analysts focus on NII growth, asset quality improvement, and stock outlook based on deposit performance.
After the last few weeks of correction, the broader market indices like nifty and sensex have been showing signs that bears will have to wait before they can make any serious attempt to control the street. But because valuations are high, it would be better to still be cautious both the amount of exposure one is taking and more importantly the stocks which one is buying should have good fundamentals and the score should have seen some improvement. These selected stocks depict a strong upward trajectory in their overall average score. This implies that there has been a significant improvement in their market outlook in the given time frame.