Expect a time correction as party continues in midcaps: Prateek Agrawal

economictimes.indiatimes.com:

Prateek Agrawal, Executive Director, Motilal Oswal AMC, says: “We have been positive about the new tech space, especially companies which have committed to turn profitable in the foreseeable future. As long as they stay on the path, the scepticism in the marketplace will slowly evaporate leading to good gains. Coming to growth versus profitability, when you make that transition, that should be expected to happen but as you go deeper into it and if all players in the space act in a disciplined manner, the transition would be smoother.”

What do you make of the construct of the market? The party continues in the smallcaps and the midcaps. Is this a rising tide phenomenon or are the gains here to stay?
We keep doing the pulse check on the market. Now, two points; one, we believe market levels on the largecap side are sustainable. While midcaps are trading higher than the long period average versus largecaps, they are still seen to be in a sustainable zone. Time correction is what we anticipate. Most of the growth themes that one is glued to at the moment all lie in the midcap space.

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Why has IT made a comeback where nothing is going right and why are banks underperforming where everything is going right?
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