Beware! Sucker's rally on in midcap, smallcap stocks

THE ECONOMIC TIMES Fri, Jan 15, 2016 | 08:09 AM IST ET Investment Opportunities

Beware! Sucker's rally on in midcap, smallcap stocks BSE smallcap index has rallied 62% in 2 years, while BSE midcap index rose 53% compared with 19% gain in Sensex in the same period. Take guard! An implosion in smallcaps around the corner Smallcaps and midcaps may come under pressure in 2016 weighed down by froth in valuations, lack of earnings visibility and growth concerns. How to go about capital protection schemes offered by mutual funds ET explains capital protection schemes from mutual funds that have low risk, but no guaranteed returns. Why investors should rebalance portfolios to cut risks and enhance returns A portfolio should be rebalanced once a year. A more frequent rejig not only leads to higher transaction costs but also has tax implications. PSU bank space a black hole, will become next BSNL/MTNL At the stock level, shares of Bank of India, Oriental Bank of Commerce, SBI, PNB and others have dropped up to 65% during the same period. 50% smallcap stocks at risk if earnings fail to catch up The S&P BSE smallcap index, which outperformed the largecap index in calendar 2015, could well be sitting on a time bomb. Infosys new darling for equity investors, TCS falls from grace After a set of stellar numbers for the December quarter, most analysts see higher allocation to Infosys from other IT counters, such as TCS. Midcap madness: Buying silver at the price of gold? Earnings failed to play catchup as prices moved disproportionately in 2015, making it look like investors were buying silver at gold prices. Winning formula for a shaky market: Pick good stocks, forget about them As fears of China slowdown escalate, there may be more volatile days going ahead, leading the market further down.

NFO (FMPs) Fund Name Category Type Open Close Min Inv   ICICI Pru FMP Series 78 1185D Plan F Reg-D Debt: FMP Closed-end 11 Jan 2016 18 Jan 2016 5,000 ICICI Pru FMP Series 78 1185D Plan F Direct-G Debt: FMP Closed-end 11 Jan 2016 18 Jan 2016 5,000 HDFC FMP 1176D Jan 2016 (1) Reg-DQ Debt: FMP Closed-end 11 Jan 2016 18 Jan 2016 5,000 HDFC FMP 1176D Jan 2016 (1) Reg-D Debt: FMP Closed-end 11 Jan 2016 18 Jan 2016 5,000 HDFC FMP 1176D Jan 2016 (1) Reg-G Debt: FMP Closed-end 11 Jan 2016 18 Jan 2016 5,000 More >>

Real Estate News

Real estate woes: After Unitech, home buyers take legal route against builder frauds, delays The Unitech case comes as a kind of confidence booster for home buyers who have been fighting builders in different forums.

10 cities where you can get homes within Rs 30-50 lakh They are Hyderabad, Pune, Navi Mumbai, Jaipur, Surat, Ghaziabad, Nagpur, Kochi, Coimbatore and Ahmedabad.

Delhi's Defence Colony best residential spot in a decade, posts 8 times price growth Vikhroli in Mumbai comes a close second, with price of an average flat rising from Rs 2,250 per sq ft in 2005 to Rs 18,000 per sq ft at present, a growth of 700%.

Sunteck Realty looks to raise Rs 100 crore through NCDs Of this, the Mumbai-based developer raised Rs 55 crore on Wednesday.

NFO - Non FMPs Fund Name Category Type Open Close Min Inv   Sundaram Long Term Tax Advantage Sr II Direct-G Equity: Tax Planning Closed-end 03 Nov 2015 15 Mar 2016 500 Sundaram Long Term Tax Advantage Sr II Direct-D Equity: Tax Planning Closed-end 03 Nov 2015 15 Mar 2016 500 Sundaram Long Term Tax Advantage Sr II Reg-G Equity: Tax Planning Closed-end 03 Nov 2015 15 Mar 2016 500 Sundaram Long Term Tax Advantage Sr II Reg-D Equity: Tax Planning Closed-end 03 Nov 2015 15 Mar 2016 500 UTI Long Term Advantage Fund Series III Reg-D Equity: Tax Planning Closed-end 18 Dec 2015 22 Mar 2016 500 More >>

Views and Recommendations

Largecaps will lead the next rally in the market: Sandip Sabharwal 14 January, 2016, 04:37 PM IST So, this time it is different is the most used statement and it is never different. I think the market is coming to a value zone. Commodities stocks a hope trade: Sandip Sabharwal 14 January, 2016, 04:26 PM IST I do not think a directional play is possible, and this entire story of a minimum export price, it is too weird. Would recommend buying RIL on dips: Parag Thakkar 14 January, 2016, 04:20 PM IST So at any dips it looks like a good buy, especially, when we know that results are on the 19th of this month and there is going to be a very good number. Will not shift overweight stance on TCS to Infosys based on one result: Parag Thakkar 14 January, 2016, 04:10 PM IST Of course, companies whether it is Infosys or TCS or Wipro, each company is great, in terms, of corporate governance, cash flows, return ratios.

More Newsletters

Daily Newsletter Special stories that round up the major developments of the day Markets Watch Round up of stock, currency, bond, money and real estate market ET Panache Latest in the world of fashion, technology, food and celebrity. Wealth Weekly news on personal finance, stocks, property, gold, tax planning and more.

Follow Us on ET:

About us|Advertise with us|Terms of Use|Privacy Policy|Feedback|Sitemap|Code of Ethics © 2016 Times Internet Limited. To ensure delivery directly to your inbox, please add etnotifications@indiatimes.com to your address book today. If you are having trouble viewing this newsletter, please click here

ET Investment Opportunities is now part of your favourite ET Wealth mailer. Property, Stocks, IPOs, NFOs and Mutual Funds – get the latest investment options in your mail box every week with ET Investment Opportunities.

To unsubscribe or edit your subscriptions please click here