Promising midcap stocks to watch out for 2022

In the last one year, the Nifty Midcap 150 TRI returned roughly 45 per cent. Continue reading to learn more about the midcap stocks for 2022.

The year 2021 was action-packed, with the first eight to nine months being upbeat and the latter three to four months being downbeat. This can be linked to a variety of causes, including Foreign Institutional Investors (FII) selling in response to the US Fed's tapering actions. Furthermore, a novel form of coronavirus known as 'Omicron' has produced considerable market pressure.   

As shown in the graph above, the midcap index has been trading downward since October 2021, with higher tops and higher bottoms. Despite this, the Nifty Midcap 150 Total Returns Index (TRI) returned 45 per cent in the last one year. Having said that, it has been observed in the past that quality stocks outperform indexes. As a result, in this article, we will look at midcap stocks that appear to be promising for 2022. 

The graph above clearly indicates that in the long term, quality stocks (as represented by the Nifty Midcap 150 Quality 50 TRI) significantly outperform the underlying index. As a result, it makes perfect sense to look for stocks that are of high quality and are available at a reasonably low price. 

Following is the list of the top five midcap stocks to watch out for the year 2022.