Midcap stocks may outperform: Chaturvedi

Excerpts from Bazaar on CNBC-TV18 Watch the full show » Nifty BSE | NSE 13/02/12 Are Mutual Funds betting on Nifty?

Midcap stocks may outperform, says Ved Prakash Chaturvedi , MD of Tata Mutual Fund.

Chaturvedi told CNBC-TV18, "If you look at the earnings positions of market participants for FY10-FY11, it does seem that the earnings growth projections for the largecap companies are reasonably moderate. Combine that with the fact that valuations for many of these companies are at the top quartile band and you have a situation where eventually focus will shift to those midcaps, which have high quality of management, which will show growth and valuations are not so high. So over two-three year period, if I am to think about what will outperform, I would feel that midcaps may outperform. In the shorter-term if there is a wall of money coming in, initially we all know that the wall of money comes into the largecap sector and hence in an immediate context maybe largecaps may out perform. On a more medium-term basis my personal sense is that the fundamentals of growth will play out and it will be the midcap sector that will outperform."