There is a second compartment, where there are companies with extremely low floating stock and there are no sellers because the businesses and the managements are good, and hence valuations have reached sky-high levels, which is a concern. The third compartment is contra or value sectors like IT, pharma, PSU banks and telecom were companies are available below their historical valuations. Unless and until some catalyst emerges it is unlikely that you will see sustainable returns in these sectors. The fourth compartment is more consumption focussed than investment focussed and where earnings growth has come, though valuations are debatable, there is earnings visibility.
Mid-cap Indian IT companies expected to outperform large-cap firms in FY25
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