Data showed smallcap valuations are stretched to such a level vis-a-vis Nifty50 that chances of the former underperforming key benchmark indices are quite high in the next 12-24 months.
My advice to investors is, one, be a long-term investor. You must have the patience to create wealth over a period of time. Second, be a regular investor. All the little savings you do will go a long way in building a good retirement corpus.
“Though people would want to participate in the midcap names because of the momentum, in terms of valuations and risk adjusted returns, we think that HCL Tech and Infosys are better placed.”
The step has hurt smallcaps and midcaps the most, which are expected to be most affected by the circular. During the current week BSE Midcap index is down nearly 4 per cent while BSE Smallcap index has plunged over 5 per cent.