We are tilting towards largecaps in our portfolios but not too worried about mid and smallcaps: Mahesh Patil

economictimes.indiatimes.com:

Mahesh Patil, CIO, ABSL AMC, says “a lot of the domestic sector focus are looking good, especially the kind of value what we have seen in the industrials, capital good, the power stocks, the backbones of the economy. If that is starting to recover, then we could see the broader market sustaining. But the recent rally has primarily been in the largecap space which was lagging behind. We have seen a good amount of money flow in the mid and smallcap space, That seems to have turned around. “


It has been a historic week, stepping into a historic month. What is the market construct looking like to you?
So, yes, I think this month has been fairly good. We have seen positive results from the electorate in the state elections. The markets have taken a positive outlook that the election outcome would be slightly favourable and globally, also, despite all the concern about growth slowdown, we have seen a decent amount of rally.

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Also, the good news is that inflation and the concerns which bothered us throughout this calendar year seems to be easing off and also, rate cuts in the US could come earlier than what we were thinking. So, all in all, overall flows wise, the market has turned positive. On the domestic side, things are still fairly steady. A lot of the sectors which we are looking at, even after the second quarter numbers, have shown a steady improvement except barring for a few sectors like consumer discretionary but a lot of the domestic sector focus are looking good,