Indian equities may remain supported by a resilient domestic economy, but the next leg of market returns is likely to be driven more by earnings delivery than another round of broad-based re-rating, according to Pawan Bharaddia, Co-founder and Chief Investment Officer at Equitree Capital Advisors.
Bharaddia sees select small and micro-cap companies, particularly in the Rs 1,000–5,000 crore market-cap range, offering greater potential for alpha, while broad mid-cap valuations leave relatively little room for disappointment. Large caps, meanwhile, offer greater stability and earnings visibility.
