Nishid Shah, President and CIO of IDFC Investment Advisors feel that midcaps are still very attractive even though they have run up 60-70% in some cases..
Shah told CNBC-TV18, "I think every dip has to be used as a buying opportunity. I personally feel that midcaps are still very attractive even though they have run up 60-70% in some cases but one should remember that from January 2008 some of the midcaps had come down to 10-15% of the peak prices and now they are trading at about 30-35% of the peak prices. If you look at the basic fundamentals, they are still growing at 20-25% and P/Es are in four-five times earnings. So I think one need to be stock specific rather than being a general on the market and I personally feel that at every dip, investors are going to put in big money.”
He further added, “The way the qualified institutional placements (QIPs) are being lapped up, that gives you an indication of the amount of money which is sitting on the sidelines. I think we are all going to be surprised on the upside and also it is going to be a very fast rise. So if somebody is sitting on the side or if somebody is trying to time the market, he maybe timed out.”
Published on Tue, May 26, 2009 at 16:46 , Updated at Tue, May 26, 2009 at 16:53
Source : CNBC-TV18
Shah told CNBC-TV18, "I think every dip has to be used as a buying opportunity. I personally feel that midcaps are still very attractive even though they have run up 60-70% in some cases but one should remember that from January 2008 some of the midcaps had come down to 10-15% of the peak prices and now they are trading at about 30-35% of the peak prices. If you look at the basic fundamentals, they are still growing at 20-25% and P/Es are in four-five times earnings. So I think one need to be stock specific rather than being a general on the market and I personally feel that at every dip, investors are going to put in big money.”
He further added, “The way the qualified institutional placements (QIPs) are being lapped up, that gives you an indication of the amount of money which is sitting on the sidelines. I think we are all going to be surprised on the upside and also it is going to be a very fast rise. So if somebody is sitting on the side or if somebody is trying to time the market, he maybe timed out.”
Published on Tue, May 26, 2009 at 16:46 , Updated at Tue, May 26, 2009 at 16:53
Source : CNBC-TV18
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