‘Correction has removed some small cap froth, but large caps are still better placed’

While the risk/reward ratio in the large cap sector remains favorable, investors with a high risk appetite and under-allocation to small caps may consider increasing exposure to companies that have undergone share price corrections, says HARISH KRISHNAN, co-chief investment officer and head of equities at Aditya Birla Sun Life Asset Management Company (AMC). In an email exchange with Abhishek KumarKrishnan noted that AMC remains bullish on domestic companies. Edited excerpts:

Has the recent correction in small cap stocks provided valuation comfort? Which sectors within the small cap sector are currently the most attractive?

Smallcap indices have corrected almost 12 percent from their

First print: March 18, 2024 | 12:43 pm IST