Stock Market Strategy - Midcaps Hit A Home Run: Motilal Oswal

A traffic signal stands next to the BSE) building in Mumbai, India, on Thursday, Feb. 1, 2018. Prime Minister Narendra Modi's government ended a tax break on equity investments as it taps the stock market boom to boost its coffers. Photographer: Dhiraj Singh/Bloomberg

Stock Market Strategy - Midcaps Hit A Home Run: Motilal Oswal

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Motilal Oswal Report

The outperformance of mid-cap and small-cap indices have gone past their earlier benchmarks on multiple fronts – consecutive months of positive returns, 12-month rolling returns gap versus the Nifty, relative valuations, and contribution to overall market capitalisation.

There exists a sharp divergence in valuations within these indices, with the gap between the top and bottom quintile expanding.

While the mid-cap/small-cap valuations are rich and no longer lucrative on the risk-reward metric, the gradual unlocking of the economy and improved demand backdrop still offer bottom-up opportunities. Consistent earnings delivery versus expectations is critical for further outperformance in our view.

Click on the attachment to read the full report:

Motilal Oswal India Strategy July 6.pdf


This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint.

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