Largecaps have not seen so much of correction, but beaten down small & midcaps are looking attractive. As the economy will remain in a recovery mode in next year – we feel that small & midcaps will do far better,
Mid & Smallcap indices which hit fresh record highs in March are likely to stay on course to create history despite volatility, says Ajay Garg, Founder & MD, Equirus Capital in D-Street Talk with Moneycontrol.
“Mid-caps have still not reached dollar-adjusted price. We are still away from what we saw in 2008. But, when the economy is in a recovery mode, small & midcaps do reasonably better,” says Garg.
“Largecaps have not seen so much of correction, but beaten down small & midcaps are looking attractive. As the economy will remain in a recovery mode in next year – we feel that small & midcaps will do far better,” suggests Garg.
What should investors do?
The small & midcaps will continue to shine but Garg recommends investors to look at companies that are market leaders. “We like to go for companies which have good governance practices, and have healthy margins,” he said.
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Kshitij Anand is the Editor Markets at Moneycontrol.
