Investors are hiding behind certain themes, stories in midcaps: Hemang Jani

In an interaction with ET Now, Hemang Jani, Senior VP at Sharekhan, said if you are sitting on a large bunch of liquidity, then you should definitely look at nibbling into the companies where overall expectations are reasonably good. Excerpts:

ET Now: Long-term investor would say that volatility and panic are genuine friends, is the current volatility and the current panic a good friend for a long-term investor, is it time to buy, is it time to shop rather than running for a cover?

Hemang Jani: It depends upon how much you have already invested in the markets. If you are sitting on a large bunch of liquidity, then you should definitely look at nibbling into the companies where overall expectations are reasonably good, but we think that some of the midcaps where things have, they are showing a lot of momentum. I think you could see some kind of selloff there as well because people are hiding behind certain themes, certain stories in the midcaps. If you look at the data, last few days when the markets are going down, many companies like 500 odd are hitting upper circuits, many companies are at 52-week high, so there is a bit of euphoria there so it is time to be little cautious on the midcap space.