Midcaps to be part of a bull market over the next 2-3 years: Tarun Kataria

In a chat with ET Now, Tarun Kataria, Chairman, Cityspring Management, shares his views on infrastructure sector and the midcap space.

ET Now: Do you think such a sharp move in some of these infra names is justified?

Tarun Kataria: There are a couple of things. One of course is the anticipation of a start in the capex cycle, which hopefully gets triggered by infrastructure spends and maybe, there is an opportunity for many of these companies to do QIPs in order to de-leverage.

Broadly speaking, after the big run-up in some of the liquid names that the FIIs typically chase and if you believe, as I do, that Modi will deliver on reforms, midcaps would be very much a part of what will be a bull market over the next two to three years.

So, one should consider the midcaps. Now whether the names that you mentioned warrant a 50-70% upmove is unclear to me, but it is part of high beta which obviously a lot of people would have interests in.