ETMarkets Smart Talk: We expect mid and smallcap index to outperform largecap over the next 12 to 18 months: Anand Rathi

“Corrections, whether through consolidation over time or absolute fall, cannot be ruled out in such instances. However, at the index level, we expect mid and small-cap outperformance over large-cap to persist over the next 12 to 18 months,” says Anand Rathi, Founder & Chairman, Anand Rathi Group.

In an interview with ETMarkets, Rathi, said: “Currently, the future profits prognosis for mid- and small-cap firms appears to be more promising than that of large-cap stocks” Edited excerpts:

Nifty@20,000 but it seems to be finding some resistance at higher levels – What is your take on markets at present?
The Indian equities market has risen throughout the current fiscal year after remaining range-bound since October 2021. In the last 12 months, the large-cap has gained roughly 12%, the midcap around 25%, and the small cap over 30%.

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Considering this, the recent phase of consolidation is both expected and good for the equity market from the medium to long-term perspective.

While we are unsure about the possibilities or even directions of the near-term market movements, we remain optimistic about the Indian stock market's medium to long-term prospects.

What is your take on the recently concluded G-20 in Delhi?
The Group of 20 (G-20) is a forum for 19 systemically important countries and the European Union. In a multipolar world and at a time of rising geopolitical uncertainty, the Group of 20 is an important forum for improving economic, financial, strategic, technological,