ETMarkets Investors’ Guide: Why Nifty50 may see a deep correction soon

Welcome to ETMarkets’ Investors Guide, a show about asset classes, market trends, and investment opportunities. This is Atul P. M.

If 2021 was a movie, the show till intermission has been splendid. The Nifty50 has returned over 12 per cent in the first half of 2021 despite a second wave of COVID-19 infections, while midcaps and smallcaps have roared to lifetime highs.

The recent launch of IPOs by new-age companies has sent the market on steroids with exuberance palpable. With that backdrop in mind, it is natural to wonder if the next six months for the Indian equity market will be similar?

ETMarkets’ Chiranjivi Chakraborty caught up with Srinivas Rao Ravuri , CIO for Equities at PGIM MF, to get his outlook on the coming six months, the return of flexi cap funds and why some NBFCs may again be a portfolio bet.

Listen in!

Q. Flexicap funds are finding traction among investors once again. What is driving this resurgence?

Q. Do you feel recently investors have gone overboard with their large investments in midcap and smallcap funds or do you see scope for more returns in that segment?

Q. Certain segments in the market have voiced concerns that the rally in the midcap and smallcap stocks is getting ahead of itself. Do you reckon that the current market opinion is as divided as it has ever been with institutional investors sitting on the fence and retail investors doing the driving?

Q. We have seen some revival in interest in NBFCs lately, especially, on the home finance front. Is the sector worth being a portfolio bet once again?

Q. On the balance, the first six months of 2021 were very healthy for equity investors. How do you reckon the next six months will shape up and will they match the returns?

Thank you, Chiranjivi and Mr. Ravuri, that was indeed a very insightful conversation.

That’s it folks in this week’s edition of the Investors’ Guide podcast. Do come back next Saturday for the weekly special. You can also check out our regular podcasts on the equity market twice every week day on ETMarkets.com.

Have a great day!