KIE sees majority of froth being present in the broader market. In particular, the brokerage foresee most pain for small and midcap stocks. Large-cap indices and stocks may be range-bound, while several midcap, small-cap and ‘narrative’ stocks may see a sharper correction, KIE noted. The firm attributes its cautious stance to rich valuations across sectors, the risk of earnings downgrades, the persistence of higher global interest rates and reduced interest in emerging markets among global investors. The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions. The opinions expressed on this page are those of Moneycontrol and do not reflect the views of the company or any of its directors or employees. The information has been provided on the request of the author on the advice of the firm and is not meant to be taken as a substitute for the advice given by Kotak Institutional Equities.
