ETMarkets Smart Talk | Large caps look better for next 24 months, but hidden gems remain in smallcaps: Divam Sharma
Sharma sees a stronger case for large caps over the next 24 months, particularly given the steep valuation premium commanded by small caps.
Indian equities have stabilized after a sharp correction, prompting investors to consider where future returns will come from, says Divam Sharma, co-founder and fund manager of Green Portfolio. The Nifty is trading near its long-term average, suggesting earnings could be the primary driver of returns over the next two to three years, with expectations of low-to-mid teens returns.
While large caps offer a stronger case over the next 24 months due to their higher valuations, Sharma advises investors not to overlook small caps, which may still contain undervalued companies with strong fundamentals and limited analyst coverage. The key is to identify businesses where growth expectations have not yet been fully priced in, rather than choosing between large and small caps.
Written by urgent.news from The Economic Times - Top News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
