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Daily Voice: Q2 earnings growth may slow to 13-14%, but mid, smallcaps still look attractive, says HDFC Securities

·Moneycontrol·Impact 3/5 · Notable

HDFC Securities expects Q2 earnings growth to slow down to 13-14%. This slowdown is a natural consequence of the high base set in the previous quarter. Despite this, the mid and small-cap segments still appear attractive, according to Unmesh Sharma of HDFC Securities. Many emerging themes are represented within these segments, making them an exciting space for investors. This could be a good opportunity for those looking to diversify their portfolios.

Read the source report: Moneycontrol →

Why it matters

HDFC Securities believes that the small and mid-cap segment remains an exciting space despite potential slowing of Q2 earnings growth. Emerging themes are well represented in this segment, making it attractive to investors.

Market impact

Impact score
3 / 5
Market signal
Positive / risk-on
Category
Market moves
Model confidence
55%

Transmission channels

Earnings growth slowdown→Small, mid-cap outperformance→Emerging theme adoption→Investor interest boost→Market sentiment lift

Likely winners & losers

Winners

  • Smallcaps
  • Mid-caps
  • Emerging themes

Under pressure

  • Large-caps
  • Defensive stocks

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MeridStreet does not reproduce source articles. The summary and analysis above are generated by MeridStreet from public headlines and its own market model; the original reporting belongs to Moneycontrol. For information only — not financial advice.