Further sell-off in India's mid-caps will lead to buying, HSBC says

Prestige Estates Projects

21/03/2024 08:18

** Any sharp sell-off in mid-caps from current levels seems
unlikely and will be used as buying opportunity, says HSBC
    ** Lists FSN E-Commerce  FSNE.NS , Equitas Small Finance
Bank  EQUI.NS , Titagarh Rail Systems  TITG.NS , Prestige
Estates Projects  PREG.NS , Phoenix Mills  PHOE.NS , Ipca
Laboratories  IPCA.NS , Voltas  VOLT.NS  and Kalyan Jewellers
 KALN.NS  as its top mid-cap ideas 
    ** The ongoing corrections in India's broader, more
domestically-focussed small-  .NIFSMCP100  and mid-caps
 .NIFMDCP100 , prompted by markets regulator's warning of
'frothy' valuations, could still deepen, according to HSBC
    ** Small- and mid-caps have lost 6.6% and 3.2%,
respectively, in March, compared with 0.2% rise in benchmark
Nifty 50  .NSEI 
    ** HSBC says current context is relatively more favourable
compared with sell-off in 2018 due to improved macroeconomic
fundamentals, relative valuation comfort in small- and mid-caps
and support from strong retail inflows

 (Reporting by Bharath Rajeswaran in Bengaluru)
 ((bharath.rajeswaran@thomsonreuters.com; +91 9769003463;))