Gautam Duggad, Chief Investment Officer at Motilal Oswal Financial Services finds it surprising that large caps are trading very cheap compared to midcaps right now. He believes the "Nifty is looking very reasonably priced."

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Duggad expects an earnings upgrade both for financial years 2024 and 2025 led by financials, auto and cement sectors.

Duggad pointed out that Nifty earnings growth at 28% in the second quarter, surpassed the initial expectation of 21%.

“Our earnings estimate for Nifty FY24 EPS has been revised upwards from ₹986 to ₹996 now and for FY25 from ₹1,130 to ₹1,140,” he told CNBC-TV18.

Duggad highlighted the broad-based participation across sectors. As many as 19 out of 21 sectors tracked either met or exceeded expectations, he noted.

He also shared his take on the Reserve Bank of India's latest move to curb unsecured consumer lending.

“Yesterday (November 16) they (RBI) took the first step, let us see how many more steps they will take. There definitely will be some impact on the growth rates. It will result in some tinkering of earnings estimates for non-banking financial companies (NBFCs) specifically but I think the bigger impact will be seen in the valuation multiples,” he said.

The RBI on November 16 increased the risk weight on assets for unsecured lending, particularly targeting personal loans and credit card loans.

According to him, the large-cap sector banks and some public sector undertaking (PSU) banks are comfortably positioned to weather the impact.

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(Edited by : Shweta Mungre)