ETMarkets Smart Talk: There could be some populist measures in Budget 2024; allocate 70-75% in largecaps in 2024: Varun Saboo
“70-75% of the portfolio in our view should be in largecaps. Remaining should be largely in small caps and only very high conviction should be held in mid-caps,” says Varun Saboo, Head — Equities, Anand Rathi Shares and Stock Brokers.
In an interview with ETMarkets, Saboo said: “There could be some element of populist measures as well which could aid consumer stocks in the near term,” Edited excerpts:
The market seems to have climbed all wall of worries to hit fresh highs in the first week of January 2024. But, the voice is getting louder both domestic and global that these valuations are unsustainable. What is your take?
Varun Saboo: We are definitely in one of the strongest runs, something which hardly anyone would have envisaged. However, in terms of valuations, there are a lot of midcaps that are trading rich and leave little room for upsides.
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Offering CollegeCourseWebsiteIndian School of BusinessISB Chief Digital OfficerVisitIndian School of BusinessISB Chief Technology OfficerVisitIIM LucknowIIML Chief Executive Officer ProgrammeVisitHowever, a lot of Large-cap names haven’t done much in the entire rally and lots of opportunities available in the large cap universe.
We also see small caps throwing open a lot of opportunities despite being a tad expensive as with their size of revenues and earnings, a little bit of positive momentum on the business side can change valuations dramatically.
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