Don't expect market to go up substantially in next six or eight months: Sridhar Sivaram
«If I look at the overall PE of the mid and smallcap, obviously they look expensive, but there are pockets which look reasonably good,» says Sridhar Sivaram, Enam Holdings.
You make a good case for it, for sure. But what has not been stable or at least when it comes to earnings and this is something that you have also brought up is what is going on with the mid and the smallcaps. Are you still firmly of the view that largecaps is a safer place to be?
Sridhar Sivaram: So, actually, mid and smallcap, it is such a big basket that we do find interesting ideas there where we can see strong earnings growth, like power sector is something that we really like, a lot of the power equipment companies are in the mid and smallcap space and they are growing at, say, 30-40%, a lot of the EMS companies are in the midcap space, they are growing at 30-40%. Obviously, these stocks have also rallied. But we think where there is earnings support, these mid and smallcaps can continue growing.
I do not think re-rating will happen, but at least they can give you the earnings returns. If I look at the overall PE of the mid and smallcap, obviously they look expensive, but there are pockets which look reasonably good.
Largecap, obviously, there are a lot of sectors within largecap which looks quite interesting, they have not participated, financials is one such segment. So, we think at this stage in the market they look far safer, that is how I will put it.
We do not expect this market to substantially go up in the next six or eight
