Nifty has moved up 4% in the past three months after a long consolidation phase, as markets look ahead with optimism due to a resilient Q2 corporate performance. With hopes of a resolution in the tariff row with the USA and signs of domestic demand revival during the ongoing festival and wedding season, aided by GST rationalization, investor sentiment appears to be improving.
The broader economic momentum is expected to be fueled by factors such as income tax rate cuts, lower interest rates, favorable monsoons, a 12-year low in inflation, and the benefits of GST rationalization. These tailwinds are particularly supportive for small and midcap companies, which are witnessing accelerated growth in sales during the festive season. With this, PL Capital has highlighted its high conviction small and midcap picks with upside potential of up to 69%: