Focus on fundamental good stocks run by capable managements: Motilal Oswal

In a chat with ET Now, Motilal Oswal, CMD, Motilal Oswal Financial Services Ltd, talked about midcap stocks. Excerpts:

New highs in the recent market rally for a lot of midcap stocks but would you make fresh investments into select midcaps at this point of time from a 3 months, 6 months, 1 year, 2 year perspective?

If you look at last one year, midcap actually has not participated in the big way except few last one month or half month; where huge number of stocks are hitting 52-week highs. So there is a caution for investors that they should not look at small midcap more from multibaggers perspective but they have to focus on fundamental good stocks run by capable managements. They should not join the frenzy as it has happened in the past as whenever market rally is going up they go and enter into smaller midcap so they must trade in smaller midcap with caution; so do their homework and research before they really bite in.