Large cap stocks have not seen correction post Q1 results: Deepak Shenoy

In an interview with ET Now, Deepak Shenoy, Founder, Capital Mind, shares his views on the midcap space.

ET Now: It is clearly a case of markets either rewarding or punishing companies based on the quarterly numbers. That is probably the stand out feature of the last few days more so in the broader markets. Today a Chennai Petro is a prime example, MRPL is a prime example, Wockhardt is an example as well, what stood out in the last four or five sessions, what stood out in terms of earnings delivery or news for you?

Deepak Shenoy: Some of the earnings issues have been primary on result days and we are looking at a lot of movements post results. Additionally, we are looking at all the expectations.

There is tremendous movement immediately on result announcements and a few days prior in the midcap space. There is a lot of expectation built in on results. You have seen some of the midcap stories both go up a lot, like Avanti has today, or go down a lot like Ambika Cotton on the back of results either being lower than expected or much higher than expected. We have seen some of the stocks that we have been looking at as well have been on the back of recent earnings as well. You have seen the Torrent Pharma stock, which we have recommended pretty much after results and that has moved up a lot, and results have been very encouraging as well.

Overall, in the large caps we have not yet seen a large correction based on results. I say that because Nifty aggregate profits, if you add all of them up, are down 2.25 per cent compared to June 2014. In that context, I do not see that kind of an overreaction or a reaction in some of the larger caps; though, the midcaps have definitely been result oriented.