Midcap, smallcap stocks once again back on investors' radar

MUMBAI: Midcap and smallcap stocks are once again back on investors' radar with BSE Midcap and Smallcap index has managed quite a turnaround from April 1, a month later largecap stocks rallied. Since April 1, BSE Midcap and Smallcap indices have gained 3% and 4% respectively compared with 1.1% gain by Sensex.

Stocks from rural sectors like Swaraj Engines, GIC Housing, Ashiana Housing, Tata Chemicals and Can Fin Homes among other have rallied sharply on Wednesday. “Good monsoon forecast has lead to a healthy spurt in rural and agri-related stocks, which were awaiting relief from the pain of poor monsoons over the last two years.

Two wheelers, agri-inputs and agri-equipment companies have posted poor numbers over the last two years and a forecast of return to normal has triggered a HOPE rally in these sectors” said ??Ravi Shenoy ,VP-Midcap Research, Motilal Oswal Securities.