Nomura India negative on midcap space

Ashwin Mehta, IT Analyst, Nomura India is negative on midcap space.

Mehta told CNBC-TV18, "We are slightly negative on the midcap universe. Out of our coverage we have two reduces, out of the three midcaps that we cover which is Mphasis, Patni and Tech Mahindra. Our view is that midcaps are one hamstrung by the fact that they are largely ADM players, limited diversification in terms of service lines, which would in a returning growth scenario tend to benefit the largercaps more."
He further added, "Secondly in the deal dynamics as well the largercaps are better placed compared to midcaps. Even within the largercaps, you started to see differentials in growth between these players. We believe the differentials with midcap growths will further expand."