Big Brokerage Turns Bullish as India's Midcap Stocks Slump
- Rebound in mid and small-cap stocks seen: HDFC Securities
- Place bets on stocks, not industries, CEO Dhiraj Relli says
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A year ago, India’s third-largest brokerage advised investors to load up on shares of the nation’s biggest companies. Now, it’s telling them to shift holdings to mid- and small-sized counterparts after a steep decline made the stocks cheaper.
“Mid- and small-cap indexes have slumped from their peak in January 2018 and, because of the time and price correction, there’s an opportunity in these stocks,” Dhiraj Relli, chief executive officer at HDFC Securities Ltd., said in an interview at his office in Mumbai. “There’s limited prospects in large-caps as they are quoting at all-time high valuations.”