As the economic growth becomes more broad-based, the midcap and smallcap segments start outperforming the largecaps, said Shibani Sircar Kurian, EVP and Head-Equity Research, Kotak Mahindra AMC.

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Speaking to CNBC-TV18, Sircar said, “We do believe that given the current valuations from a market perspective, the broader market participation is likely to pick up and that will continue as economic growth and overall corporate earnings recovery also starts to improve.”

Shibani is positive on the financial space.

“We believe the banks especially the larger private banks have well-positioned themselves because they have built up provisioning coverage and they have raised capital. Therefore, as growth picks up, banks are the barometer of growth and reflection of the same. Therefore we are fairly positive on the private sector pack,” she said.

“Within the financial space, we are also fairly positive on the insurance segment both life as well as general. We believe that this is a structural story where incrementally under-penetration is likely to lead to better growth and therefore companies that are able to maintain market share and gain market share will benefit. So overall financials we are fairly positive,” Shibani added.

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(Edited by : Ankit Gohel)