Focus on midcaps for alpha generation amidst market uncertainty: Aman Chowhan
«There has been some pickup, whether in GDP numbers, in earnings growth, or in top line or something for it to get some trigger or some reason to be bullish about or to add on to what the current holding is, so that is what the whole situation is,» says Aman Chowhan, Abakkus Asset Manager.
Let us understand what is the way forward for small and midcap stocks and I will break it into two or three points here, first, for the mid and the smallcap stocks as a cycle; second, where are they headed in terms of a theme and when will the momentum really come back in some of these stocks?
Aman Chowhan: First thing is, see, there is always this assumption that it is largecap versus midcaps. Normally, it does not happen that way. At any given point of time, there will be some largecap that will do well, some midcap that will do well, irrespective of the cycle.
Now, currently, we had good three, three-and-a-half years of mid and smallcap outperformance and we are giving away some of that outperformance, that too only those stocks which have gone to 50-60 PE have corrected the maximum.
So, it is not that overall as a basket, mid and smallcap have corrected. Yes, there is some technical factor, liquidity factor, retail investment or interest was maximum in this space which is obvious, and hence that is where the maximum selling is.
Because as far as institutions are concerned, us or whomever I have spoken to, there has been no redemption in the MF or in the PMS, AIF space.
Stock Trading
Maximise Returns by Investing in the
