Small, midcap stocks attractive bets right now: Tata MF

Mumbai: Smallcap and midcap stocks are attractive bets at this point, says Rahul Singh, CIO-Equities at Tata Asset Management Company, echoing similar views by other asset managers in recent times.

"It is the right time to increase your focus on midcap stocks," he told reporters at a press briefing, adding that the fund house was adding more midcaps to its portfolio.

Singh, who manages equities at India's 13th largest fund house, however, said midcaps will do better as a category only when the economy shows some signs of recovery.


"Smallcaps are even more attractive than midcaps," he said.

Many fund managers in recent times have said that the tide is turning in favor of smallcaps and midcaps.

Singh also pointed out that core earnings cut has been steep and the downgrade cycle was nearly complete.

He added that there were earnings cuts despite corporate tax reduction. Singh said earnings growth, excluding corporate banks, of around 8-10 per cent was in line with nominal GDP growth rate.