In the wake of an 11% rally in the Nifty index and a surge of around 29% in the Nifty Midcap 100 and Smallcap 250, a range of large-cap stocks that have been underperforming are predicted to bounce back. Sanjeev Prasad from Kotak Institutional Equities anticipates a rebound for stocks such as Reliance Industries (RIL), Tata Consumer, Hindustan Unilever (LON:ULVR), Wipro (NYSE:WIT), HDFC Life Insurance, Infosys (NS:INFY), LTI Mindtree, Tata Steel, HCL Technologies and HDFC Bank.
These stocks have seen significant declines recently, with HDFC Life Insurance experiencing a 15% drop and LTI Mindtree falling by 14%. Despite these setbacks, the Bloomberg consensus forecasts a gain of nearly 22% for RIL and up to 15% for Hindustan Unilever within the next year.
Siddhartha Khemka from Motilal Oswal Financial Services is predicting a recovery in consumer stocks. However, he suggests that the IT sector may require an additional one to two quarters to recover. This outlook indicates that while some sectors are poised for quick recovery, others may need more time before they can regain their footing.
This news follows Tuesday's market performance where these large-cap stocks underperformed the Nifty50. Despite this recent underperformance, analysts remain optimistic about their potential for growth.
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