Rally in mid caps can last: Deutsche Bank

Tags: Stock Market
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.

EDITORIAL OF THE DAY

  • It makes sense to highlight PM’s achievements with little noise to attract greater attention

    Are prime minister Narendra Modi and the BJP going over the top?

FC NEWSLETTER

Stay informed on our latest news!

TODAY'S COLUMNS

Arun Nigavekar

Can Hefa actually become a reality?

The ministry of human resource development (MHRD) is actively wo­rking ...

Kuruvilla Pandikattu

The India of our dreams

The speech “I have a dr­eam,” that Martin Luther King ...

Shona Adhikari

Head to Tate Modern for a refresher course on Bhupen Khakhar

India’s celebrated artist Bhupen Khakhar’s exhibition, titled You Can’t Please ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture