Rally in mid caps can last: Deutsche Bank

The rally in mid cap stocks, which have risen 30 percent since August, compared with a 19 percent rise in Sensex, can extend to catch up on significant underperformance it saw in last three years versus the large caps, Deutsche Bank says.

"Mid cap stocks tend to rally sharply when economic growth is expected to be at an inflection point. While the jury is still out on the pace of economic recovery, we believe that growth has bottomed, currency has stabilised and the twin deficits have shown a marked improvement," Deutsche Bank said in a report on Wednesday.

The bank flags Bharat Forge, Hindustan Petroleum Corp, Jain Irrigation Systems, LIC Housing Finance, Shree Cement, Shriram Transport Finance and Yes Bank as its top mid cap picks.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.

EDITORIAL OF THE DAY

  • If the first 17 editions of Saarc were tragedies, Kathmandu was a sham

    Rarely has a regional grouping such as the South Asian Association of Regional Cooperation (Saarc) promised so much and delivered so little.

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Chander Mohan Sethi

CMD, Reckitt Benckiser India

COLUMNIST

Varun Dutt

<b>Riskfactor</b>: Future in your hands

A common reference point as to why people believe the ...

Zehra Naqvi

Being unrealistic can be good for you

Depression is a term that most people use very casually ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture