But nonetheless, I think even when it has not performed so much, I think if somebody has to put fresh money, I think it surely makes a lot of sense given the performance, valuation comfort, I do not see much of a challenge over there. And recently, the fact bond yields went down when you had that big dividend payout, I think there was a bit of an outperformance. So, I think you could look for some more outperformance at least over the next 6 to 12 months.
Manav Chopra, from Nuvama Institutional Equities, foresees bullish trends in metals, defence, power, and mid-tier PSU banks. Bank Nifty support levels, IT sector basing out, and strong performances in Karur Vysya Bank, BSE, and metals sector are notable. Chopra further says: "It seems the bull market is here to stay and eventually , we expect the midcap 100 to rally towards sub-58,000 levels and for the smallcaps, we have a target of close to 18,000 levels."
Vora believes owning HDFC Bank would not add significant alpha to his fund in the current value momentum regime. They stay out of HDFC Bank and Kotak Bank until their overall scores improve, focusing on sectors like financials, industrials, energy, and auto for potential growth in the medium to long term.
“The smallcap inflows have been so overwhelming that the overvaluation of smallcaps relative to largecaps is at an all-time high. There is no precedent in Indian history for what we have seen in the last couple of years. Given that anomaly, the re-pricing of largecaps has a long way to go. Some of it has happened over the last couple of weeks, but I think this is just the beginning.”
“If I look back at the last 10 years on our seasonality tool on strike, we end up seeing that seven out of 10 years are negative. And that gives you a 70% probability of a downside for the upcoming month, given the overbought readings that we have right now on key indices.”