Foreign investors’ rotation out of India’s large-cap bellwethers and into mid- and small-cap stocks may have further to run as global funds hunt for companies whose earnings can potentially double or triple, according to Rajat Rajgarhia, Managing Director and CEO–Institutional Equities at Motilal Oswal Financial Services.
With several of India’s top 25 companies still delivering single-digit growth, Rajgarhia said the stronger earnings momentum is increasingly concentrated beyond the large-cap universe. “I do not see that trend changing in the near future,” he told ET Markets on the sidelines of Motilal Oswal Financial Services 22nd Annual Global Investor Conference.
