Business News›Markets›Stocks›News›Be bullish, but apply more macro checks and balances: 6 mid-cap stocks from different sectors with an upside potential of up to 49%
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Be bullish, but apply more macro checks and balances: 6 mid-cap stocks from different sectors with an upside potential of up to 49%
Synopsis
This is a corrective phase sparked by fears of a slowdown in earnings. And it is now accompanied by two major headwinds: One, rising oil prices; and two, higher US bond yields. In this scenario, you can well question the logic of looking at mid-caps stocks. So ask yourself this question: Will all the things bothering the market change the business outlook of the company whose stock you want to buy? Consider this: For oil companies that import oil and sell only in the domestic market, the rising rupee is an issue. But for oil companies that import oil, refine it, and then export it, it is much less of an issue. So, while the markets are volatile, try to understand the dynamics of the businesses underlying stocks and decide accordingly.
What are the buzzwords on the street these days? Rising yield of US bonds, weakening rupee, higher oil prices, muted corporate earnings. Now, ask yourself: Are these terms being used by market players for the first time? The answer is no. In the past 10 years alone, these terms have been bandied about on Dalal Street every second year; in fact, sometimes every six months. Yet, the fact is that, despite all these worries, a ton of wealth has been
ETMarkets.com
13 mins read
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