These mid-cap stocks with ‘Strong Buy’ & ‘Buy’ recos can rally over 25%, according to analysts

Short-term movements in emerging markets may be impacted by events in that particular country. But what makes the biggest difference to emerging markets is whether the global “risk on trade” is on – or not. With the US Fed having cut rates, there is a high probability that we might see a resumption of “risk on trade” – where the global risk appetite rises. This “risk on trade” was halted in the Indian market for the first three months of 2024. It briefly resumed in April, but again suffered a setback in May. It remains to be seen when it will resume. If one goes by market breadth, there are indications that the phenomenon is making a comeback. Keep an eye on liquidity and market breadth in the next few sessions as that will determine what happens to mid-cap stocks in the medium term. If the market breadth and the Nifty stay positive, it is very likely that we might see more strength in mid-caps.