Midcap Stocks Show Bullish Trend: Muthoot Finance, REC Ltd, Power Fin.Corpn., and Sona BLW Precis. Upgraded to Buy Ratings
Muthoot Finance, REC Ltd, Power Fin.Corpn., and Sona BLW Precis. have all been upgraded from a hold to a buy rating, indicating their strong performance in the market. The demand for gold loans and the government's focus on the power sector are expected to drive the growth of these companies. Sona BLW Precis. is also expected to benefit from the recovery of the automotive industry. The midcap segment has been performing well, with a positive sentiment in the market and several stocks showing a bullish trend. This makes it a good time to consider investing in this segment.
Muthoot Finance, REC Ltd, Power Fin.Corpn., and Sona BLW Precis.Muthoot Finance, a leading gold loan company, has been upgraded from a hold to a buy rating. The company has been performing well in the market, with its stock price showing a bullish trend. This can be attributed to the increasing demand for gold loans due to the economic uncertainty caused by the pandemic. With the festive season approaching, the demand for gold loans is expected to rise even further, making Muthoot Finance a promising investment option.
REC Ltd, a leading power sector financing company, has also been upgraded from a hold to a buy rating. The company has been consistently performing well and has shown a bullish trend in the market. With the government's focus on increasing power generation and distribution, REC Ltd is expected to benefit from the growth in the power sector. This makes it a good investment option for investors looking for long-term gains.
Power Fin.Corpn., another power sector financing company, has also been upgraded from a hold to a buy rating. The company has been showing a bullish trend in the market, with its stock price on the rise. With the government's push towards renewable energy and the increasing demand for power, Power Fin.Corpn. is expected to see a rise in its business and profits. This makes it a good investment option for investors looking for growth opportunities.
Sona BLW Precis., a leading automotive component manufacturer, has been upgraded from a hold to a buy rating. The company has been performing well in the market, with its stock price showing a bullish trend. With the automotive industry slowly recovering from the impact of the pandemic, Sona BLW Precis. is expected to see a rise in demand for its products. This makes it a good investment option for investors looking for growth potential in the automotive sector.
Overall, the midcap segment has been performing well, with the BSE midcap index showing a 0.13% increase. Among the midcap stocks, New India Assura has been the best performer with a return of 3.66%, while JSW Energy has been the worst performer with a return of -2.59%. The advance decline ratio of the stocks in this segment is 70 advancing and 51 declining, with a ratio of 1.37x. This indicates a positive sentiment in the market for midcap stocks.
In terms of technical calls, Sona BLW Precis. has shown a change from mildly bearish to mildly bullish, while Gujarat Gas has changed from bullish to mildly bullish. Muthoot Finance, Biocon, and Voltas have all shown a change from bullish to mildly bullish. This indicates a positive outlook for these stocks in the near future.
In conclusion, the midcap segment has been performing well, with several stocks showing a bullish trend. The recent upgrades in ratings for Muthoot Finance, REC Ltd, Power Fin.Corpn., and Sona BLW Precis. make them promising investment options for investors. With the overall positive sentiment in the market for midcap stocks, it is a good time to consider investing in this segment.
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