HNI's interest in markets leads to rise in midcap stocks: David Pezarkar

In a chat with ET Now, David Pezarkar, CIO-Equities, BOI AXA Investment Manager, shares his views on market outlook.

ET Now: What are your views about midcaps and small caps?

David Pezarkar: That seems to be the flavour of the moment largely because of the absence of large institutional players. Although we have not seen any on the ground improvement in terms of possibilities of higher revenues or an improvement in profits immediately in this quarter but there certainly seems to be some investor interest in a large scale of midcap companies across sectors.

The fact that some of these companies were driven down to extremely low valuations but if one is looking for operational improvements to happen in this quarter itself, I feel that is unlikely.

In terms of earnings momentum, there could be some disappointment on that count but definitely, the sentiment for midcaps seems to have improved and that is also partly due to the fact that there seems to be more retail participation in the markets.

Other asset classes such as gold have been a large disappointment during 2013. So, there is more HNI interest in the markets, which is possibly leading to this rise in midcap stocks.