Bearish on moid-cap stocks: Prakash Diwan, Asit C. Mehta Investment Intermediates Ltd.

Prakash Diwan, Head-Institutional Clients Group, Asit C. Mehta Investment Intermediates Ltd., in a chat with ET Now, gives his views on mid-cap stocks


What are the chances that in the last week of this calendar year, the local crowd would be able to ramp up some of the mid-cap stocks? I am just talking about a yearend phenomenon, which we have seen every year?

Possibly, but what’s happening is people have got into these fancy mid-cap stocks, especially on the growth and consumption stories. They have been nibbling into these stocks on and off every time we have seen markets slide down and kind of show some signs of consolidation. It is not like a screaming buy opportunity that these stocks offer at this point in time and what’s different about this year is that throughout the year, you possibly had this feeling that things are going to look bad and they could probably go from bad to worse and that’s exactly why there is not too much of a queuing up for these stocks. Come January results season should probably kick off and the mood is only going to get more sombre, so I do not think this time around the local people are also looking at pouring in too much of money. It could probably be more of portfolio balancing averaging out in some of the high conviction counters and that’s about it, so you might not see it reflect on the indices in a very major way.