Some Smid counters in bear market zone

livemint.com:

SJVN have fallen 20-37% from their peaks, while midcaps like Kajaria Ceramics, Rail Vikas Nigam Ltd (RVNL) and NHPC have plunged 20-26% from their highs. The correction in these stocks comes after a prolific run with markets discounting the re-rated prospects of some stocks ahead of their value.

For instance, construction major Ircon surged almost sixfold from a low of ₹50.10 on 27 February last year to a high of ₹280.85 on 23 January, before shedding 25% from that level. Similarly, RVNL rose over six times from a low of 56.05 on 1 March last year to ₹345.50 on 23 January this year, before profit booking hit the counter.

Another stock, which has been the darling of the Street, Indian Renewable Energy Development Agency (Ireda) fell 24.5% from its high of 214.80 only last week to ₹162.15 on 13 February. The stock rose fourfold from a listing price of ₹50 on 29 November to its high on 6 February.

“Some of these stocks, especially the government run ones, have been re-rated and have surged because of demand as the government is using these companies to execute its projects," said A. Balasubramanian, MD & CEO, Aditya Birla Sun Life AMC.