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PMS driving rally in small- and mid-cap stocks?

Joydeep Ghosh & Ashley Coutinho 

The Sensex might still be 2,000 points shy of its all-time high but the BSE Midcap and Smallcap indices have run ahead and crossed the milestone. An expert has a novel explanation for the ongoing rally in small- and mid-cap stocks. He says it is the money of portfolio management services (PMS) that is pushing up these stocks. Other experts also say distributors are preferring to sell PMS where the commissions can go as high as five per cent, compared with mutual funds where the fee is only one per cent.

PMS driving rally in small- and mid-cap stocks?
Pause in rally in banking stocks?

The rally in banking stocks might be heading for a pause if the expiry data are anything to go by. The Bank Nifty rollover data are below their past average, both in terms of open interest and percentage terms. Also, most of the long positions formed in the past series are now out of the system, said experts. Analysts now suggest traders should avoid forming fresh longs in the Bank Nifty, as it is nearing its resistance zone of 19,100-19,300. The index has gained about 37 per cent in the past five months.

MFs scout for fund managerstesting.. we are here....

Even as the Sensex has crossed 28,000 points and debt funds are doing quite well due to falling yields, many fund houses are running short of fund managers. These include Axis Mutual Fund, whose chief investment officer of equities - Pankaj Murarka - quit last week, and other fund houses such as IDFC Mutual Fund, DSP BlackRock and Tata Mutual Fund, which are aggressively looking for replacements or additions to their equity and debt segments.

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First Published: Mon, August 01 2016. 00:04 IST
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