‘Irrational exuberance’: Kotak stops mid-cap recommendations
NEW DELHI: Kotak Institutional Equities has ceased to recommend Indian mid-cap companies as it finds few stocks, apart from a select few in the financial sector, that have further upward potential following the mid-cap index's remarkable surge this year.The domestically focused mid-cap index has reached numerous all-time highs, posting a 31% gain this year, significantly outperforming the 10% rise in the benchmark Nifty 50 index. This exceptional rally has raised concerns of a potential market correction.Kotak analysts Sanjeev Prasad, Anindya Bhowmik, and Sunita Baldawa expressed their view in a note, stating, "The primary driver of the rally appears to be irrational exuberance among investors, with high-return expectations being driven by the high returns of the past few months. We see l...
