Mid, smallcap valuations stretched: Ashoka Buildcon, Colgate Palmolive, smaller IT stocks top bets
Midcaps: After dream run in midcap smallcap index during Samvat 2079 outperforming large cap index, while valuations may have become expensive and analysts now expect large caps to gain. Midcap IT stocks may still outperform large caps. Ashoka Buidcon, Colgate palmolive are amongst analyst picks.
Stock market today: The broader market has outperformed the Nifty significantly during Samvat 2079. During calendar year 2023, while Nifty’s year to date returns are close 7.5 %, Nifty Midcap year to date return is close to 28.9% and Nifty Small cap 100 year to date return is around 38%. However after this huge outperformance valuations of mid and small caps are stretched and they are now trading at a premium to large caps say analysts. This leads analysts to be cautious on mid-cap and small cap space as they remain selective amongst their Stock picks.
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