Select mid and small cap stocks have risen sharper than benchmark indices, giving whopping returns in the last few months. Here are a select list of 7 stocks that fund managers are investing in as prospects for these companies have brightened in the last few months.
A beneficiary of lower excise in the Union Budget
Ever since the Union Budget announced a reduction in excise on footwear under Rs 1000, Bata India has been rallying. The stock is now under the radar of leading fund managers, with most brokerages setting a higher target for the stock. Volumes are expected to improve after the reduction in excise duty.
Reduction in NPA to boost prospects
Oriental Bank of Commerce is a stock that has virtually doubled from its 52-week low. Hopes of economic recovery and hence hopes of improvement in non performing assets has pushed the stock higher. The stock is currently trading at Rs 278, after hitting a 52-week low of Rs 121.
Diesel deregulation to provide boost
Petroleum refining major, HPCL has also been on the list of "buys" from fund managers. Hopes of diesel deregulation and a fall in crude prices after the recent Iraq crisis has once again made the stock a favourite of fund managers.
Voltas to gain from economic recovery
Voltas in the last few months has become a favorite stock of fund managers and investors, who hope that an economic recovery would benefit a major like Voltas first. Being a part of the Tata group the company has a strong pedigree and solid past track record.
A top-notch supplier to the world's automobile manufacturers
Bharat Forge is the world's largest forging company with manufacturing facilities spread across India, Germany and Sweden. Hopes of a revival in economic activity around the globe has pushed share of Bharat Forge higher since it is a major exporter of forging to some of the world's leading automobile companies. The stock is currently trading at Rs 693.
A tech player
This tech company has also been on the radar of fund managers, who are looking at mid and small cap companies. Hopes of a sharp recovery in the US markets has helped brighten the prospects of Mindtree, which is among the reputed IT services providers in the country.
Will ride on economic recovery
HCC is a construction company that has built some of the finest projects in the country, including the famed Bandra-Worli sea link in Mumbai. The company is now back in the black and hopes of an IPO for Lavassa may provide further trigger for the stock.