The performance of Indian stock markets has been relatively well in the current year 2018, given that, we consider large-cap stocks and headline indices Sensex and Nifty only. Sandip Sabharwal of asksandipsabharwal.com has said the midcap stocks bottom is very-very near and it may happen over next few sessions. Notably, this year has turned out as negative for many small-cap and mid-cap stocks as the benchmarks Nifty Next 50 has lost nearly 11% in 2018 so far while Nifty Midcap 100 and Nifty Smallcap 100 have declined by 15% and 23%, respectively.
Yesterday only, more than 2,000 stocks closed in negative territory out of the total 2,777 traded shares on BSE. Other than the Nifty 50 index, other broader indices of NSE such as Nifty Next 50, Nifty 200, Nifty 500, Nifty Midcap50, Nifty Midcap 100, Nifty Smallcap 100 fell 1 to 3%. “The midcap bottom is very-very near. Either it happened yesterday or will happen over the next few sessions. For most good midcaps downside risk far lower than upside potential,” Sandip Sabharwal said in a tweet.
The MIDCAP bottom is very-very near. Either it happened yesterday or will happen over the next few sessions.
For most Good Midcaps downside risk far lower than upside potential. @nikunjdalmia @AyeshaFaridi1 @tanvirgill2 @SiddarthBhamre
— sandip sabharwal (@sandipsabharwal) July 17, 2018
Earlier yesterday, following the carnage in small-cap and mid-cap stocks, Sandeep Sabharwal said that everyone’s mid-cap is down and it’s a systematic fall. “It’s not your mid-cap or my mid-cap that is down. Everyone’s mid-cap is down. It’s a systematic fall. If you have the right stock sit tight. The stocks will be much higher a year from now,” Sandip Sabharwal tweeted.
It's not your Mid Cap or my Mid Cap that is down.
Everyone's Mid Cap is down.
It's a systematic fall
If you have the right stock sit tight.
The stocks will be much higher a year from now.
— sandip sabharwal (@sandipsabharwal) July 16, 2018
According to a Financial Express report, Nifty Midcap has lost 15.8% in 2018 so far, leaving investors with fairly large losses. “Some 33 of the stocks have lost 25% each since the beginning of the current calendar year, with Vakrangee and PC Jeweller plunging as much as 88% and 80.5%, respectively. Interestingly, of the 135 trading sessions so far this year, 75 days saw the midcap gauge closing in the red,” the Financial Express report added.
Indian stock markets ended in a negative territory on Monday following the muted to subdued activity in Asian stock markets and the unhappiness among investors after the WPI based inflation escalated to over 4-year high on the back of rising food and fuel prices. BSE Sensex lost 217.86 points or 0.6% to end at 36,323.77 while NSE Nifty edged down 82.05 points or 0.74% to settle below 11,000 at 10,936.85.