Mid, smallcap valuations stretched: Ashoka Buildcon, Colgate Palmolive, smaller IT stocks top bets

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Geojit Financial Services Dr Vijayakumar, who though feels that IT, mid caps will outperform large caps. Also Read- Mauritius-based FII buys stake in this multibagger energy stock Ambreesh Baliga, Independent market expert said that the momentum in the mid and small caps is keeping investors interested in the space. However the valuations are stretched now.

The midcap and smallcap stocks are likely to deliver positive returns in Samvat 2080, we feel that large caps are better placed vis-à-vis mid and small cap companies, said Manish Chowdhury, Head of Research, StoxBox. Despite the corporate earnings growing in the last two years, the index returns of benchmarks (Nifty and Sensex) does not commensurate with the earnings growth, feels Chowdhury, thereby placing them favorably in the year ahead. Some of the small and mid caps recommended by Chowdhury include Ashoka Buildcon and Colgate-Palmolive .

Also Read-ONGC share price declines over 1% post Q2 results. Should you buy, sell or hold the stock? Check brokerage views Ashoka Buildcon: The private sector is emerging as the key player across various infrastructure segments, from roads and communication to power and airports. Ashoka Buildcon's robust order inflows, latest technology and innovative construction practices and better project execution, despite inflationary challenges could still deliver healthy financial performance feel Chowdhury.