Should investors shift to mid-caps?

After gaining 11% in the past three months, the BSE Mid-cap Index is trading at 24x compared to Sensex’s 19x  

Published 5 years ago on Jun 27, 2016 1 minute Read

Ravi Shenoy, Vice president, mid-caps, Motilal Oswal Securities

Over the next one year, mid-caps will do well as they will be the prime beneficiary of falling interest rates and an easing working capital cycle. The central bank has already cut rates significantly and we expect another 25 basis points cut this year. Higher capacity utilisation will also aid earnings and margin growth in the coming months. For instance, smaller cement companies are operating at 60-65% capacity. Even


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