We are extremely bullish on being in the larger end of the market: N Jayakumar

economictimes.indiatimes.com:

N Jayakumar, MD, Prime Securities, says “it is a stock picker's market as far as the small and midcap end is concerned. We have to be really careful about IPOs. Almost by corollary and by default, we are extremely bullish on being in the larger end of the markets and from that point of view, there are a lot more buys in the larger end and the largecaps also offer a combination of liquidity, valuation comfort and the overall theme that India is the destination of choice for so many people has never been more amplified.”

India is in great form not only on the cricket pitch, but also as far as markets are concerned. When you look at the comparative landscape, all the economies are suffering, markets are not doing great but we are barely under 5% from all-time high. We may not have done well on the index front but midcaps have been doing great for the longest period of time. Is this enthusiasm justified or are we seeing early phases of froth building in parts of the market?
We have seen the froth build up in one, the small SME exchanges where IPOs have been going gangbusters, listing premiums have been large and virtually every company which has gone there has been able to sail through. It has also been there in some of the small and midcap end of the market. So, at least in the listed space, while we can talk about the space as a whole, inevitably veterans will tell you that we are able to dig out gems even in this market even though certain spaces are overheated.

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