Friday, August 11, 2006

Will midcap stocks make you rich?

With the Sensex showing some signs of recovering from its previous highs, the focus is turning towards the midcap space. The performance of the midcaps is seen as a key to pushing and sustaining the rally that one has seen in the market in the last couple of days. Analysts put it good earnings numbers and reasonable valuation in that space. "Generally the midcaps have reported good results, and what happened in May-June was that the bottom just fell off for many of them. 40-50% fall took place in good midcaps. That was not warranted on fundamentals. That was more of brokerages and banks liquidating clients' positions.
The performance of the midcap space is also barometer for judging the retail investors mood about the market, as the bulk of the retail investment goes to these stocks. So if these stocks have again started rearing their heads, it means the return of the retail interest in the market, which is good for its breadth.
You can find more at Midcap stocks

Tags: , , , , , , , , ,

0 Comments:

Post a Comment

<< Home