ETMarkets Smart Talk: Microcap and smallcap segment of market looks risky and overheated: Girirajan Murugan
“The Microcap and Small cap look risky and overheated at this point of time as the stocks have reflected a sharp rise in their prices during the past few months,” says Girirajan Murugan, CEO, FundsIndia.
In an interview with ETMarkets, Murugan said: “The small cap and microcap stocks are more sensitive to macroeconomic changes that lead to more volatility in the short term” Edited excerpts:
Nifty hit 20200 levels and then we saw some bit of healthy profit-taking amid muted global cues. What is your take on markets for the medium to long term?
Our medium to long-term view remains bullish on the Indian stock market. We believe that the current correction in the Nifty of around 4% from the all-time high has offered a good opportunity to accumulate fundamentally strong stocks for the medium to long term at reasonable valuations.
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The persistently high global interest rates and concerns over China's beleaguered property market have further dented the investors’ sentiment in the short term.
The weakness in the market is likely to extend until crude oil prices and interest rates remain high, posing a risk to the earnings session ahead. The Nifty has a strong base around 19230 levels.
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