No Result
View All Result
SUBMIT YOUR ARTICLES
  • Login
Sunday, October 12, 2025
TheAdviserMagazine.com
  • Home
  • Financial Planning
    • Financial Planning
    • Personal Finance
  • Market Research
    • Business
    • Investing
    • Money
    • Economy
    • Markets
    • Stocks
    • Trading
  • 401k Plans
  • College
  • IRS & Taxes
  • Estate Plans
  • Social Security
  • Medicare
  • Legal
  • Home
  • Financial Planning
    • Financial Planning
    • Personal Finance
  • Market Research
    • Business
    • Investing
    • Money
    • Economy
    • Markets
    • Stocks
    • Trading
  • 401k Plans
  • College
  • IRS & Taxes
  • Estate Plans
  • Social Security
  • Medicare
  • Legal
No Result
View All Result
TheAdviserMagazine.com
No Result
View All Result
Home Market Research Business

markets: Mid & smallcaps may outpace largecaps on back of India’s growth texture: Hari Shyamsunder

by TheAdviserMagazine
5 months ago
in Business
Reading Time: 5 mins read
A A
markets: Mid & smallcaps may outpace largecaps on back of India’s growth texture: Hari Shyamsunder
Share on FacebookShare on TwitterShare on LInkedIn


“Over the last 20 years it has gone from 4% to 20%, 4% to 12% to 20%. So, now, if you maybe 28% even in the next 10 years, then the rate of growth definitely has been slowing down. So, we need to keep that in mind,” says Hari Shyamsunder, Franklin Templeton.

Let us start talking about sectors then. One sector where right now the jury is not out whether it is cheap or whether it is realistic view which is it. I can argue about these are fantastic companies. They do buybacks, cash, and stocks are cheap. You can argue back and say that where is growth. AI, US, maturity of business. I do not know which side of the argument would win. So, let us start arguing.Hari Shyamsunder: So, on the IT side, we are mostly well neutral. We are a bit mixed on that and the reason we are mostly neutral is we see both sides of that argument really. So, on the largecap IT if you look at the size of our IT companies now, the IT exports from India are close to about 20% of global IT spends now. In terms of headcounts, we are about 35% to 40%. So, we are not small by any stretch of imagination.

Over the last 20 years it has gone from 4% to 20%, 4% to 12% to 20%. So, now, if you maybe 28% even in the next 10 years, then the rate of growth definitely has been slowing down. So, we need to keep that in mind.

At the same time, we have seen headwinds coming from the GCC side where the global capability centres have been ramping up in India and that is acted as a bit of a headwind for the IT companies as well and at the same time put into all this mix we have seen that AI is a bit of a wild card in terms of what kind of impact there can be, the impact we can see immediately.

The kind of benefits, the kind of new use cases that can come up are a bit harder to envision. So, it is a bit of waiting for some of those to become a bit clearer while we can immediately see some of the impacts which are coming through.

Live Events

Start of the year it was pretty apparent that all and everyone just wanted to stick it out with the largecaps because the whole valuation bubble so to speak started off with small and midcaps. Data in the April recovery does not seem to be suggesting so. In fact if nothing mid and smallcaps at an index level have done a lot better and I am not even talking about individual stocks here. Do you think it makes sense to do any kind of market cap categorization or classification in your portfolios?Hari Shyamsunder: So, on the debate between large, mid, and smallcaps, we have been acknowledging that largecaps had become cheaper at least. The most recent rally has taken it up now maybe to one standard deviation above long-term averages again. But what we would note is that over the next three to five years we continue to believe that given the drivers of the economic growth in India, just the texture of that would tend to benefit mid and smallcap earnings over this period. So, while mid and smallcaps might be expensive and they are continuing to be above the long-term averages, we know that we cannot exclude them completely. If you are going to look at Indian growth story, if you are going to look at the Indian opportunities which are coming out, then the mid and smallcap need to continue to be a part of the portfolios. So, we have not moved into a camp which just completely throws out the mid and smallcaps and says that that is completely uninvestable. Instead, we continue to look for opportunities. As I said, looking particularly where maybe valuations have become cheaper for some of the maybe not sound reasons in the long term, maybe there are some short-term reasons why the stocks have corrected and we are looking to pick them up.

So, I am going to change gears and talk about something which you said manufacturing. India is not big in manufacturing, but manufacturing stocks in India have done well. Whether India does well or not, I do not know. Manufacturing stocks have done well. Defence stocks have done well. Power stocks have done well. Solar power stocks have done well. There is a lot of narrative in the market, like some storytelling stocks. What happens to some of these storytelling stocks, manufacturing, defence, solar, EV, drones?Hari Shyamsunder: Yes, so that is really the big debate or it is a big challenge because the valuations are not cheaper by any stretch of imagination. So, it is something which we have been struggling with as well. The opportunity is kind of clear in some cases. Some of it is, as you said, there is a bit of a story, of course, a narrative which has been built and the numbers are not yet as clear.

So, in these cases again we have been looking for better levels and while they were approaching better levels, before we could act on them decisively enough maybe the stocks have moved up very sharply. But manufacturing you need to look at it directly in terms of some of the sectors which have been mentioned, but there are still continuing to be industrial product companies, for example, where we still own certain positions.

There are certain ancillary associated with manufacturing kind of stocks which we can look at instead of looking directly at some of the headline names. But you are right the challenge here is that valuations have become pretty stretched here and so we will need to get lot more conviction on the visibility of the numbers before we wade into them with a lot more conviction.

So, what should be the expected rate on return? We have done 20 minutes of sector valuations, ultimately it matters is that for a viewer he wants to know from you is that if the starting point is today and the time horizon is three year, will a large, well-managed, equity diversified scheme will it first beat the index and what could be the index return?Hari Shyamsunder: As I said this is a market which is going to favour stock picking. So, we like our chances here in this kind of a market where it is down to the skills of fund manager in terms of picking the stocks.

So, over this period as a market we should still be looking at the range of, let us say, about 10% to 13% for the largecaps at least and well, mid and smallcaps we are starting off from that the markets.

Across the board broader markets itself should be in this kind of a range compounding at 10% to 13% over the next three-five years. So, that is the kind of expectation which we should bake in given where the valuations are today. Within this, of course, there is a lot of new stocks which are coming up. Just note that over the last couple of years we have seen a lot of stocks being listed, about 150 odd in the main board at least.

The Indian stock markets are very dynamic. There are a lot of new ideas coming. While we do not participate in all of the IPOs, they are a pool of ideas which we keep coming back to and I think that that is what keeps the Indian markets interesting.



Source link

Tags: growthHariIndiaslargecapsmarketsMidOutpaceShyamsundersmallcapsTexture
ShareTweetShare
Previous Post

These 7 Stocks Have the Wind at Their Backs – and Room to Run Another 51%

Next Post

The Tax Consequences of Winning the Lottery or a Big Prize

Related Posts

edit post
Trump’s tariff revenue checks could create a ‘weird feedback loop’ that encourages more price hikes, analyst says

Trump’s tariff revenue checks could create a ‘weird feedback loop’ that encourages more price hikes, analyst says

by TheAdviserMagazine
October 12, 2025
0

Checks made out to Americans to the tune of $1,000-$2,000 may be on the horizon, President Donald Trump said recently...

edit post
Gold and silver ETFs account for 72% of passive mutual fund inflows: AMFI

Gold and silver ETFs account for 72% of passive mutual fund inflows: AMFI

by TheAdviserMagazine
October 12, 2025
0

Gold and silver ETFs together constitute 71.9% of total passive fund flows of Rs 19,057 crore, highlighting investors’ growing preference...

edit post
Diane Keaton’s quiet activism helped preserve these Los Angeles landmarks

Diane Keaton’s quiet activism helped preserve these Los Angeles landmarks

by TheAdviserMagazine
October 11, 2025
0

While Oscar-winning actor Diane Keaton was best known for roles in Woody Allen movies and the Godfather saga, she was...

edit post
Could Buying Amazon Stock Today Set You Up For Life?

Could Buying Amazon Stock Today Set You Up For Life?

by TheAdviserMagazine
October 11, 2025
0

Amazon (NASDAQ: AMZN) has been a bit of a disappointment for investors lately. Its stock has gained just 34% over...

edit post
Gold prices could soar to ,000 per ounce in just three years

Gold prices could soar to $10,000 per ounce in just three years

by TheAdviserMagazine
October 11, 2025
0

After surging nearly 50% so far this year, gold could skyrocket 150% as early as 2028 if its current pace...

edit post
Silicon Valley tech boss Marc Benioff says he’s all for Trump sending troops to San Francisco since ‘we don’t have enough cops’

Silicon Valley tech boss Marc Benioff says he’s all for Trump sending troops to San Francisco since ‘we don’t have enough cops’

by TheAdviserMagazine
October 11, 2025
0

Salesforce CEO Marc Benioff says America’s tech capital has a police problem, and he’s welcoming President Donald Trump’s pitch to...

Next Post
edit post
The Tax Consequences of Winning the Lottery or a Big Prize

The Tax Consequences of Winning the Lottery or a Big Prize

edit post
Azerbaijan sought Erdogan-Netanyahu summit in Baku

Azerbaijan sought Erdogan-Netanyahu summit in Baku

  • Trending
  • Comments
  • Latest
edit post
What Happens If a Spouse Dies Without a Will in North Carolina?

What Happens If a Spouse Dies Without a Will in North Carolina?

September 14, 2025
edit post
Pennsylvania House of Representatives Rejects Update to Child Custody Laws

Pennsylvania House of Representatives Rejects Update to Child Custody Laws

October 7, 2025
edit post
What to Do When a Loved One Dies in North Carolina

What to Do When a Loved One Dies in North Carolina

October 8, 2025
edit post
Baby Boomers Are Flocking to This Florida Town — but Not for the Weather

Baby Boomers Are Flocking to This Florida Town — but Not for the Weather

October 9, 2025
edit post
Tips to Apply for Mental Health SSDI Without Therapy

Tips to Apply for Mental Health SSDI Without Therapy

September 19, 2025
edit post
DACA recipients no longer eligible for Marketplace health insurance and subsidies

DACA recipients no longer eligible for Marketplace health insurance and subsidies

September 11, 2025
edit post
Trump’s tariff revenue checks could create a ‘weird feedback loop’ that encourages more price hikes, analyst says

Trump’s tariff revenue checks could create a ‘weird feedback loop’ that encourages more price hikes, analyst says

0
edit post
How to Save on Yard Skeletons for Halloween This Year

How to Save on Yard Skeletons for Halloween This Year

0
edit post
Pentera buys AI remediation co Dev Ocean

Pentera buys AI remediation co Dev Ocean

0
edit post
Best high-yield savings interest rates today, October 11, 2025 (Earn up to 4.31% APY)

Best high-yield savings interest rates today, October 11, 2025 (Earn up to 4.31% APY)

0
edit post
Are We Waking Up Fast Enough to the Dangers of AI Militarism?

Are We Waking Up Fast Enough to the Dangers of AI Militarism?

0
edit post
Peter Brandt Flips Bullish on Bitcoin, Ethereum, XRP, and XLM

Peter Brandt Flips Bullish on Bitcoin, Ethereum, XRP, and XLM

0
edit post
Trump’s tariff revenue checks could create a ‘weird feedback loop’ that encourages more price hikes, analyst says

Trump’s tariff revenue checks could create a ‘weird feedback loop’ that encourages more price hikes, analyst says

October 12, 2025
edit post
Gold and silver ETFs account for 72% of passive mutual fund inflows: AMFI

Gold and silver ETFs account for 72% of passive mutual fund inflows: AMFI

October 12, 2025
edit post
Fighting for Peace

Fighting for Peace

October 12, 2025
edit post
Diane Keaton’s quiet activism helped preserve these Los Angeles landmarks

Diane Keaton’s quiet activism helped preserve these Los Angeles landmarks

October 11, 2025
edit post
Could Buying Amazon Stock Today Set You Up For Life?

Could Buying Amazon Stock Today Set You Up For Life?

October 11, 2025
edit post
Gold prices could soar to ,000 per ounce in just three years

Gold prices could soar to $10,000 per ounce in just three years

October 11, 2025
The Adviser Magazine

The first and only national digital and print magazine that connects individuals, families, and businesses to Fee-Only financial advisers, accountants, attorneys and college guidance counselors.

CATEGORIES

  • 401k Plans
  • Business
  • College
  • Cryptocurrency
  • Economy
  • Estate Plans
  • Financial Planning
  • Investing
  • IRS & Taxes
  • Legal
  • Market Analysis
  • Markets
  • Medicare
  • Money
  • Personal Finance
  • Social Security
  • Startups
  • Stock Market
  • Trading

LATEST UPDATES

  • Trump’s tariff revenue checks could create a ‘weird feedback loop’ that encourages more price hikes, analyst says
  • Gold and silver ETFs account for 72% of passive mutual fund inflows: AMFI
  • Fighting for Peace
  • Our Great Privacy Policy
  • Terms of Use, Legal Notices & Disclosures
  • Contact us
  • About Us

© Copyright 2024 All Rights Reserved
See articles for original source and related links to external sites.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
No Result
View All Result
  • Home
  • Financial Planning
    • Financial Planning
    • Personal Finance
  • Market Research
    • Business
    • Investing
    • Money
    • Economy
    • Markets
    • Stocks
    • Trading
  • 401k Plans
  • College
  • IRS & Taxes
  • Estate Plans
  • Social Security
  • Medicare
  • Legal

© Copyright 2024 All Rights Reserved
See articles for original source and related links to external sites.