Buying quality stocks should be one of the basic principles while investing in markets. But when one is buying mid-cap stocks this principle becomes even more important for multiple reasons and specially at a time when valuations are not cheap and small corrections can lead to strong negative reaction in stock prices. Now how does one do it? Look at the underlying business which is best understood by going through its annual report and look at a certain basic ratio in order to figure out how much return that underlying business can generate in best and worst case.
On Tuesday, 1992 stocks advanced, 1811 declined and 126 remained unchanged, with an advance decline ratio of 1.09 on the Bombay Stock Exchange (BSE), indicating positive closing of stocks in broader markets.
The company will boost capacity at its recently acquired Neelachal Ispat Nigam Ltd (NINL) to 5.5 million tonnes per annum (mtpa) from the present 1 mtpa, said Ashish Anupam, vice-president, long products at Tata Steel.
In the past week, the market experienced some turbulence, particularly on Wednesday when a significant dip was observed, impacting small- and mid-cap stocks. Approximately 668 stocks suffered a decline of more than 4.5%.