6 High Quality Midcap Stocks That Have Dived To 52-Week Lows

Indian markets continue to witness relentless selling pressure since the start of the year. As we write the Sensex has dived 708 points, thanks to a decline in the HFDC twins and ICICI Bank. All three are heavyweight stocks.

6 Midcap Stocks That Have Hit 52-week lows

	Current market price	52-week low price
Pfizer	Rs 4353	Rs 4330
Astra Zeneca	Rs 2783	Rs 2773
Jyothy Labs	Rs 138	Rs 133
Zydus Wellness	Rs 1649	Rs 1615
Essel Propack	Rs 186	Rs 183
Vijaya Diagnostic	Rs 493	Rs 492

Should you buy these midcap stocks?

The answer is not yet. In this market, what goes up continue to go up and what falls continues to fall. Any stock that is exhibiting strength in this market, is bound to continue to climb when the markets recover.

Most of the stocks that are falling are high quality pharma stocks for which there are no major triggers. In fact, there was a time when pharma stocks acted as defensives, that is no longer happening now.

We believe trying to predict the exact bottom got some of these stocks is going to be risky. So, we suggest that investors stay away from these midcap stocks, though some of them are very reputed multinational pharma companies.

Invest in the markets with caution?

We believe with interest rates across the globe headed higher, global markets, especially emerging markets like India may see a sustained selling pressure from Foreign Portfolio Investors. When this selling pressure is likely to end is hard to say. If the pressure may continue for long, it may even lead to some serious pulling-off money from the table into mutual funds.

In fact, mutual fund investors have so far been a patient lot and any serious downside in the markets, may test their patience. Even if we look fundamentally, Indian stocks are over valued. Therefore, it is good to stay away from stocks for the time being. In fact, some brokerage estimates that Indian valuations are at a premium of at least 20% to long term averages, making them expensive.

With interest rates rising globally, also the era of easy money is gone and investors may find it hard to get stupendous returns from stocks like in the future.

Disclaimer

Investing in equities is risky and investors must therefore understand the risk. The author and Greynium Information Technologies Pvt Ltd would not be responsible for any losses caused based on the article. The author and his family do not hold shares of any of the 6 companies listed above while writing the article.