Mid cap and small cap stocks are in focus ahead of the exit polls on June 1 and the Lok Sabha poll results, which will start trickling in on the morning of June 4. The BSE midcap index has surged 62.35% in a year and gained 18.12% in 2024. The index has risen 8.35% since the election started on April 19. The index closed at 40,159 on April 18. It ended at 43,515 on May 28, down 273 points today.
On the other hand, BSE small cap index has surged 57.26% in a year and gained 11.15% in 2024. The small cap index has climbed 4.36% since the Lok Sabha election started on April 19. The index closed at 45,450 on April 18. It ended at 47,433 on May 28, down 521 points today.
Here’s a look at the stocks analysts are betting on ahead of results of Lok Sabha polls.
Narendra Solanki, Head Fundamental Research - Investment Services, Anand Rathi Shares and Stock Brokers is bullish on Dalmia Bharat stock with a price target of Rs 2406. From the breweries and distilleries sector, Solanki likes United Breweries stock with a price target of Rs 2300.
Another stock Solanki is bullish on is Electrosteel Castings with a price target of Rs 200.
Arpit Jain, Joint MD at Arihant Capital mentioned Sheela Foam, Somany Ceramics and Seamac as his top three mid cap or small cap picks.
Apurva Sheth, Head of Market Perspectives & Research, SAMCO Securities likes shares of CAMS, CMS Info systems and Shakti Pumps.
Ravi Singh, Senior Vice-President (Retail Research) at Religare Broking did not mention his picks in the small cap and mid cap space. Instead, he advised investors to be cautious. “Given the inherent volatility associated with mid and small-cap counters before elections results, it is important for investors to be cautious. When evaluating companies, it's important to look for those with strong fundamentals and a track record of outperforming benchmarks. These companies can provide potential investment opportunities that offer growth potential and stability, even in uncertain market conditions,” said Singh.