After a tepid 2081 that saw benchmark indices returning less than 6%, the good news is that most market experts believe that things will get better from here. However, they also said that it would be a good strategy to take the safer haven of large-caps.

Said Sankaran Naren, executive director and chief investment officer, ICICI Prudential asset management company , “From a valuation perspective, large-cap stocks are better placed than mid- and small-caps at this stage.” He added that large caps not only offer better valuation comfort but also stronger earnings visibility. In contrast, smaller companies can see sharper corrections when market sentiment changes.”

As far as valuations go, the Sensex’s price-to-earnings (P/E) ratio is marginally up from last year’s Samvat at 23.22x (23.

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