The financial markets generate a lot of number on a per second basis. There are people who have made it a profession to convert this information into trends, buy-sell signals, charts and pivot tables. Over the last 18 years of financial journalism, I have realised that every number has a story to tell. And these numbers as a trend normally never lie. I am forever looking for these trends.
The CNX midcap Index has underperformed the broader market by almost 18-20 percent due to sluggish demand, high interest costs and cost pressures. We expect these factors to ease in the coming year. Midcaps are trading at a discount of about 20 percent to large caps. With better earnings growth and the valuations gap closing, we expect them to perform better. We also expect the consumption cycle to continue on the back of strong rural demand.
CIO, Baroda Pioneer AMC