ETMarkets Smart Talk: Why small & midcap stocks could consolidate in the near-term, Santosh Singh explains

economictimes.indiatimes.com:

“If we look at the ownership pattern of the market, mid and small cap ownership seems to be at high. This may mean that the segment may see consolidation in the near term,” says Santosh Singh, Fund Manager, MOAMC.

In an interview with ETMarkets, Singh said: “The global scenario now looks much better than what it was a year back with the interest rates near their peak, inflation showing some signs of moderating, and a hard landing of the economies may not happen” Edited excerpts:We are seeing some nervousness at record highs for Mr Market. How do you see things moving – have we hit the top for the moment? Although the Nifty50 is closer to its all-time high, I don’t see a reason to be nervous.

I think the global scenario now looks much better than what it was a year back with the interest rates near their peak, inflation showing some signs of moderating, and a hard landing of the economies may not happen. India’s corporate earnings is also showing resilience, most of the earnings reported in the current result season have been ahead of the analyst’s expectations.

I have always believed that if the numbers are being delivered the market will also deliver.Interestingly the US Fed is open for further rate hikes. Do you see that could dampen the bull's party on D-Street? The US Fed has made its policy decisions data dependent and they are in no hurry to reduce the rates, which in my opinion is the right thing to do from a long-term perspective if the past is anything to go by.