ETMarkets Fund Manager Talk-This smallcase manager sees scope for the current bull run in equities lasting beyond 2024 elections

economictimes.indiatimes.com:

MUMBAI — After the stellar run by midcap and smallcap stocks in the recent months, a few sections in this segment do look a bit stretched, but one cannot say that the market is overheating, believes investment advisory firm Weekend Investing. “The large cap stocks and the more institutional invested portions of the markets are not heated at all.

That gives some sense that this is just a start of a big move up that can last potentially beyond the general elections of 2024,” says Alok Jain, smallcase manager and founder, Weekend Investing. While equities remain the most popular avenue, Jain continues to believe that a well-diversified portfolio is the most prudent strategy for any investor.

“We live in a world with a lot of interdependencies on other nations as well as on local governance, both of which can cause a derailment of equity markets if things go that way,” he said in an interview with ETMarkets. Edited excerpts:After 4 months of bull run, do you think the equity market is overheating or you see more legs to this rally?Yes, there are signs of some overbought pockets within the mid and smallcap stocks, but nowhere near what we have seen in the past.

Also, the large cap stocks and the more institutional invested portions of the markets are not heated at all. That gives some sense that this is just a start of a big move up that can last potentially beyond the general elections of 2024.As you pointed out, the broader market has outperformed benchmarks by a wide margin. Do you see this outperformance continuing?I think there is always a relay race that happens in the markets where the baton is passed around in the various segments in succession.