The sharp three-month rebound in midcap and smallcap stocks has left investors with little room for earnings disappointments, prompting Axis Direct to favour a selective shift toward largecaps. Rajesh Palviya, head of research, says Nifty50 valuations are near their long-term average, offering better comfort for fresh allocations than increasingly expensive pockets of the broader market following their recent surge now.
Edited excerpts from a chat:
