Investors in India are piling onto mid and small caps with renewed vigour. In a couple of weeks the narrative will once again shift to quarterly earnings.
“For some more time, this whole thing can play out that the giant stocks which are very well owned, the large banks may not do well and the smaller ones will keep doing well. For a player who is not very momentum or trade-oriented, it makes sense that some of the profits made out of a lot of other small and midcaps, can be parked in the large banks because there is safety and potential for 30-40% returns.”
“There is an inherent strength in all the balance sheets of the large scale metal companies. Metal companies have seen a brilliant consolidation of one or two years. The prices are favourable and we are going to see an up cycle over the next one or two years. It could be a good time to look at this sector.”
Jio Financial Services will be in between say a traditional lending business or a traditional financial services business and a tech, a complete fintech based business because it will probably try and use best of both the worlds.