Chief Institutional Trader First Global
The strong bull market is yet to come for small-caps and mid-caps. I feel the largecap may continue to disappoint us in terms of earnings. I believe small-caps and mid-caps remain the best bright spot to invest in. The bunch of stocks from the chemical sector will continue to outperform. Indian specialty chemical business is expected to reach USD 70 bn by 2020. Hence, investors looking for upside over the next 12 months can look at investing in specialty chemical stocks. People with a high-risk appetite can actually look at investing in some of the infrastructure company stocks having current market cap below Rs 500-1000 crore, which attracts me a lot. The debt reduction programme and the lower interest rate is going to revive fortunes for infra companies as it is going to save a lot of interest cost and will help them to grow at a sustainable growth rate. The dynamics of Indian markets are evolving in such a way that our dependency on FII inflows has lessened. Small and mid-caps are becoming an important part of the institutional portfolio across the globe. Therefore, I would suggest Buy in this space before FIIS get into this trade. This is the space where a lot of money is expected to flow in.