May 18: BSE Mid Cap Index has fallen from a recent high of 7316.61 to 6828.48 on Friday trade eroding the value of investments made by leading Portfolio Managers such as Porinju Veliyath. Colgate Palmolive, Petronet LNG Ltd, Crompton Greaves, Castrol Industries, Ramco Cements and Rajesh Exports have made marginal gains of one to two percent in morning trade.
The Portfolio Managers perhaps didn’t see the correction emerging after a euphoric 2017 that witnessed bullish run in small and midcap stocks. According to Gaurav Mehta, Fund Manager, Ambit Asset Management quoted in The Economic Times, the correction in the past three months can be seen as an opportunity for making fresh investments.
Porinju Veliyath informed his clients that portfolio rebalancing was only possible once buying interest emerges in mid caps. He has urged the investors to wait patiently for the market to rebound again. In this corrective phase both good quality and bad quality stocks have been impacted according to Gaurav Mehta.
BSE SmallCap Index has fallen from a recent high of 1840.67 to 17522.27 on Friday trade. Among the major gainers are Uttam Sugar 80.5 (11%), Orient Refractories Ltd (BSE:534076, NSE ORIENTREF), Dhampur Sugar Mills 88.40 (10.92%), Avadh Sugar 345.50 (9.84%), S Chand And Sons 380.60 (7.83%), Time Technoplast Ltd 132.20 (BSE:532856, NSE:TIMETECHNO).