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Kotaks Shibani Sircar Kurian favors largecaps for risk reward, backed by market perspective, macro stability, GDP growth, corporate earnings, IT sector transformation, and positive rural income trajectory from normal monsoons to boost consumer durables pack. Kurian also says that mass consumption has clearly been lagging the premium end and therefore monsoons play a very important role in getting the rural income trajectory back on track.

Feroze Azeez says: “Investor confidence has gone up on the back of education which has started in 2013. Liquidity, both on the domestic and the foreign institutional side seems robust because the domestic guys are putting money out of education and foreigners are putting on the probability of the continuance of the government. Plus, earnings have been very heartening.”

“Given the current sentiment, as we move into the next calendar year, we could see fresh allocations from FIIs and they could take a slightly positive view over there. The allocations could increase in the first half of next calendar year and with the strong domestic flows which are coming, we could probably see the markets getting into elections slightly on a positive note.”

“I am sure people who are joining the party late, either will have to take higher risk or will have to commit the money for a longer period of time; there is no other way to make money. So, I am sure people who are coming in today have to have a longer time frame to make reasonable returns.”

"The recent rally in the market has led to strong inflows into midcap and smallcap funds. However, the valuation gap between largecap and midcap/smallcap stocks has narrowed. Investors looking to invest in midcap and smallcap funds should have a longer term view and manage their return expectations accordingly. Multicap funds, with balanced exposure across market caps, have the potential to deliver good risk-adjusted returns."

“Reliance Industries needs to really participate and get the momentum going. It is trailing at around Rs 2,400. That is also the point at which it had broken out from its one year falling channel. We are watching very closely whether that support holds because once the momentum picks up, then we will actually get further addition to the index pretty quickly.”