Investing in mid cap stocks is one of the toughest challenges for any investor. This challenge gets much bigger when the valuations are extremely high but an investor’s desire to invest in them is high due to the fact that they have been impressed by recent gains in their mid-cap stocks. In such times, it would be better that investors should be cautious in selecting the stocks, better to go with buying in smaller quantities and keep some cash allocated for the stocks, but only to be used on the day when there is absolutely chaos on the street. Refinitiv’s Stock Report Plus which lists stocks with high upside potential over the next 12 months, having an average recommendation rating of “buy” or "strong buy".
However, since the beginning of this month, end-user industries have started showing signs of pick-up in demand, which is expected to sustain going ahead, says Ronald Siyoni, Associate Vice president at Sharekhan by BNP Paribas.
Even in volatile markets analysts are bullish on selective mid-cap stocks. One of the reasons could be the fact that while the earning season has been on the expected lines, the strong negative reaction in the market may be due to global market conditions which are getting into risk off mode with rising US yeild. ET screener powered by Refinitiv’s Stock Report Plus lists down quality stocks with high upside potential over the next 12 months, having an average recommendation rating of “buy” or "strong buy". This predefined screener is only available to ET Prime users.
A company issues bonus shares for their shareholders in order to increase the liquidity of the stock as well as with the aim to decrease its stock price to make it affordable for investors