Mid-cap gave double returns than Sensex, Nifty in one year
Despite the fears from demonetisation and Brexit, State Assembly Elections, GST Bill and other global and domestic factors that contributed in investors sentiments, the mid-cap companies have managed to outperform from the benchmarks Sensex and Nifty.
According to a report by Bloomberg, mid-cap stocks have outperformed S&P BSE Sensex Index for the third straight year delivering better-than-expected earnings and higher domestic inflows.
When we compared the Sensex and Nifty with S&P BSE Mid-cap, the return was just more than double. In one year, where Sensex gave return of 10% and Nifty gave 12%, the mid-cap benchmark gave return of 30%.
As per the report, foreign investors own 27.3% of Sensex stocks compared to 19.43% of the mid-cap index. The mid-cap index trades at 37% premium to Sensex and 19% premium to its five-year average price-to-earnings ratio.
There are mid-cap companies which has given returns of more than 500% in just one year. Here's a look at top 20 mid-cap companies that gave robust returns to its investors.
However, Amit Goenka, Analysts, Multibaggerstocks.co.in, said, "For the next 4-5 months, we'll see new highs being made, and then we might see a phase of correction. Not all midcaps and smallcaps are a buy though."
The earning season has started. The companies will start announcing their financial results for the quarter ended on March 31, 2017.
According to a report by Systematix, the analysts expect 3.2% year-on-year impact on net revenue and -17.3% yoy decline in PAT for companies in our mid-cap coverage universe in 4QFY17.