ETMarkets Investor Guide: How to Spot Quality Small and Mid-Cap Companies

Hello, this is the ETMarkets Investor Guide, a program on asset classes, market trends and investment opportunities. This is Atul PM

It was another record week for the national stock market. The BSE Sensex benchmark index closed the week above the 46,000 mark for the first time, while the 50-share Nifty closed above the 13,500 mark. Overall, large caps outperformed small and mid caps with a rally of more than 2 percent during the week ending Dec. 11. Analysts said that strong inflows from foreign institutional investors and hopes for the Covid-19 vaccine have been supporting the rally in Indian stocks.

BSE Sensex has gained 56 percent this financial year, the BSE Midcap Index 66 percent and the BSE Smallcap Index 82 percent.

So will the bulls still be in the driver’s seat? Are midcaps and smallcaps ready for another round of superior performance? How can quality stocks be chosen from the broader market at this stage? We met with Sachin Shah from Emkay Investment Manager to discuss these and other questions. LISTEN IN

Welcome to the show, Mr. Shah

1) How are you analyzing the investment landscape right now amid stretched valuations?

2) Is the current rally the start of a good morning or are we on the last lap before a long break?

3) As you said, the overall market will perform better now. So how do you select stocks in the mid- and small-cap segments?

4) What pockets look attractive in the general market?

Thank you, Mr. Shah. In fact, it was a deep conversation.

That’s it in this week’s edition of the special weekend podcast. Check back next Saturday for this weekly special. You can check out our regular podcasts on the stock market twice a day.