The medium capitalized segment of the stock market is being increasingly perceived as an attractive investment segment with high growth potential. However, the lack of awareness among the investors has not been able to prove much as per the above statement. Majority of the investors invest keeping in mind the High return and substantial risk. However, these are the bane for the small investors as the denominations of price of the shares ranges in thousands. But now it's possible for such small investors to enter the stock market through Midcaps.
Midcaps are the one ranging from $2 billion to $10 billion; this group of companies is considered to be more volatile than the large and mega-cap companies. Growth stocks represent a significant portion of the mid caps. Some of the companies might not be industry leaders, but they: are well on their way to becoming one. The companies that represent the Midcaps are outperforming the Largecaps in terms of growth given a long term.
The study on "Midcaps and their impact on Indian stock market" undertaken with the aim of familiarizing with the concept of CNX Midcaps 200, The study helps in understanding the significance of investing in such companies and also is the comparative study of Midcaps with that of Large Caps.
[...] The CNX Midcaps 200 is the benchmark index of the Indian Capital market and one, which has the longest social memory. In fact, the CNX Midcaps 200 is considered to be barometer for Midcaps industry. It has acquired a unique place in the collective consciousness of Indian stock market .Further, as the oldest index of the Indian stock market; it provides time series data over a fairly long period of time. Research methodology Research methodology is a way to systematically solve the research problem. [...]
[...] Rerating combined with earnings growth to drive stock price performance Growth Drivers Increasing consuming class, outsourcing Infrastructural investments Funds flow Into the equity markets Clearly, large number of medium term opportunities SBIMF is positive on capital goods, engineering, automobiles, cement & technology Sectors like textiles, construction, and auto ancillaries to create huge wealth Technical view Nearly ten years of a corrective bear market to be followed by a secular bull market BSE Sensex target at 7500 by March 2006 WHY INVEST IN MIDCAPS ? [...]
[...] All companies are evaluated for trading interest and financial performance Method of computation CNX Midcap 200 is computed using market capitalization weighted method, wherein the level of the index reflects the total market value of all the stocks in the index relative to a particular base period. The method also takes into account constituent changes in the index and importantly corporate actions such as stock splits, rights, etc without affecting the index value. Base Date and Value The base period is calendar year 1994, indexed to a value of 1000. [...]
[...] Need and importance of study The ups and downs in the stock market are the indication of the movement of the economy. CNX Midcap 200 is the index which acts as the barometer for the 200 companies that belongs to Midcaps category. The study helps in understanding the significance of investing in such companies and also is the comparative study of Midcaps with that of Large Caps. Objectives of the study 1. To study the performance of Midcaps industry 2. [...]
[...] Although Indian companies with their expertise in chemistry are able to synthesize molecules, the huge costs involved in conducting clinical trials and launching the drug has prompted them to depend on international peers to undertake the more expensive clinical trials and product launches in for upfront and milestone payments (ex Ranbaxy out-licensed one of its urology olecules to Schwarz Pharma and Dr Reddy's out licensed a molecule to Novo Nordisk). Indian companies are thus able to mitigate the risk involved in new drug discovery. [...]
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