92% of Nifty Midcap 100 stocks gain in November; PFC, Prestige Estate top the list
Power Finance Corp was the top gainer, soaring 42 percent, followed by Prestige Estates, up 39 percent, HPCL, up 35 percent, BHEL, up 33 percent, and Torrent Power, up 30.5 percent. Trent, REC, PB Fintech, Alkem Labs, TVS Motor, Aurobindo Pharma and YES Bank also advanced between 20 and 29 percent. However, Whirlpool was the top loser, shedding 12 percent, followed by Indian Bank, down over 6 percent, Linde India, Vodafone Idea, Tata Communications, Delhivery, Zee Entertainment, and AB Capital, down between 1 and 4 percent each in November.
Despite the surge in mid-cap stocks, most experts advise investors to remain cautious before heavily investing in these stocks. Experts suggest investors to take a stock-specific approach if they wish to accumulate more stocks from this space. "Midcaps and smallcaps usually are subject to higher volatility, especially when their valuations are on either extreme.
Currently, a good chunk of small and mid-cap stocks is trading at higher valuations. Whenever there is such a scenario, even a small negative news has a larger impact on the stock prices which we witnessed a few days back even though it was temporary. So, yes at least in the near term, we see more valuation comfort in the largecaps and larger midcaps," said Viraj Gandhi, CEO, SAMCO MF.
V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, believes the overall market momentum is likely to sustain since the incoming data and news are positive. Vijayakumar pointed out that the Q2FY24 GDP growth rate at 7.6 percent surpassed expectations, particularly, the 13.9 percent growth in manufacturing and 13.3 percent growth in construction are impressive numbers. This has the potential to push the FY24 GDP growth rate
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