INSUBCONTINENT EXCLUSIVE:
With the ruling National Democratic Alliance (NDA) returning to power at the centre, mid-cap and small-cap companies are likely to be the
more attractive options for investors in terms of value, a market analyst report said on Friday.Mid-cap is the term given to firms with
medium-sized market capitalisation."With NDA coming back into power we can expect local investors to take comfort in the mid and small-cap
space with a longer 2-3 year horizon and inflows could resume in them," a Kotak report said."In terms of market cap orientation we see more
overall scenario, the report expressed concerns over economic growth and investment."The priority of the government will be to revive
economic growth and investment, although the macro-economic situation is quite challenging
There is a need of strong fiscal stimulus but scope of doing so seems limited given the high crude prices leading to higher current account
earnings and valuations, the Reserve Bank of India's (RBI) forthcoming policy review, and the build-up to the Union Budget will guide the
equipment, housing finance companies and rural-focused companies will benefit the most over the next one year.Consumption stocks, however,
could take a back seat because of the slowdown in demand and rich valuations, the report added.
