Nimesh Chandan discusses FII selling, Nifty earnings estimates stability, and the potential for continued growth in the Real Estate sector post-election results. Chandan further says that largecap stocks currently offer a better risk-to-reward ratio compared to midcaps and smallcaps. He says: " On the business side, we expect chemicals and CRAMS(Contract research and manufacturing services) sectors, which has been an underperformer for the past few years, to get re-rated as business improves this year."
In the mid and small cap categories, valuations are higher by 20-25 percent compared to their historical range and hence Nimesh Chandan sees some chances of correction here.