Largecaps in Nifty 50 and Nifty 100 have stable growth prospects: Deven Choksey
Deven Choksey, MD, DRChoksey FinServ Pvt. Ltd, says for those stocks which are not going to have the higher amount of growth rate attached to it, the valuations will probably get moderated. There may not always be a price correction, but a possibility of time correction is there and Choksey would like to play safe. At this point of time, some of the largecap companies within the Nifty 50, Nifty 100 basket, remain relatively more solid, more sure about the growth prospects going forward. Some of the large cap companies within the Nifty 50, Nifty 100 basket, remain relatively more solid, more sure about the growth prospects going forward.
What is the outlook when it comes to the broader markets versus the frontliners because as per the historical data, it seems like the broader markets are likely to take a leap ahead as compared to the frontliners for the month of October. Do you reckon it will be the case this time as well?
Deven Choksey: I believe that the valuations are going to be the driving factor year after. Whenever you find stretch valuations in the broader market, be it in the midcap or a smallcap either, I guess the market would not be very easy to accept that premium valuation.
Given the fact that we are now on a higher base as far as the corporate earnings are concerned, vis-a-vis last year and given the fact that I think on the same higher base, higher growth is not seen, the growth is now coming to actual reality wherein if economy is 11.5-12% nominal rate of growth, then the corporate earnings are
