India will continue to be a favoured investment destination like we have seen in the last 20 years.
Markets have probably discounted a gradual tapering by the US Fed. Recently, small caps and commodities did correct more than large caps. However, keeping the short-term reactions aside, the impact of any taper really depends on the circumstances under which the US Fed starts tapering, according to some analysts.
The upside potential in large caps is probably in single-digit percentages. As far as small and mid-caps are concerned, valuations are stretched after the super run of the past 12 months and for the first time in over a decade, the mid-cap indices’ valuations are at a premium to large-caps.
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