Jyotivardhan Jaipuria, founder and managing director at Valentis Advisors is of the view that the correction in mid-cap stocks was triggered by higher valuations.

"There was a big valuation difference between the large and mid-caps which was worrying, he said. However, in the next six months we could see equal performance from both the large and mid-caps. The valuations between the two are getting even now,"Jaipuria told CNBC-TV18 on Tuesday.

“The bulk of the pain in mid-cap is over, especially in terms of underperformance,” said Jaipuria.

Jaipuria said he has been investing into the capital goods sector.

"As economy grows, there is no new capacity coming up in most of the capital goods space. The existing players are sitting on lot of capacity and the utilisation levels are bound to go up, so these companies will benefit from operating leverage," he said adding that the focus is on under-owned sectors.

Moreover, in an election year, the government will not go back on spending, which will benefit the capital goods sector, said Jaipuria.

From the capital goods space, the house is upbeat on the pipes space. The Chinese threat in pipes is also over and so Indian players have the whole field now.

Manufacturing is another space where there has been no capex but demand has been picking up and they could benefit from operating leverage, according to Jaipuria. The house is positive on cement but not overly bullish on it.