The smallcaps are looking good but need to be selective while buying them, said Vinit Sambre, Head of Equities at DSP Investment Managers, on Thursday.

In an interview to CNBC-TV18, he said, "We have a positive view on the smallcaps right now but investors need to be patient with their capital."

On market front, Sambre said, "There is an optimism on the revival of the economy. The Union Budget 2021 has been much better than the expectation, very bold reforms and announcements. So very positive over medium to long-term but the optimism seems to have got built into stock prices too soon.”

Talking about other sectors, he said, “The smaller public sector undertaking (PSU) banks are moving up on hopes of a turnaround but we do not own any. We have exposure in defensives as there is visibility in demand although it is not cheap.”

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(Edited by : Priyanka Rathi)