Midcaps to outperform largecaps; hunt for midcap IT, pharma and infra names: Ashwani Gujral

In an interview with ET Now, Ashwani Gujral, Fund Manager, Ashwanigujral.com, shares his view on how the market may behave in the next few sessions.

ET Now: Nifty closed Thusrday's session around 1 per cent higher. What do you make of the session and how would you position yourself for the next few days?

Ashwani Gujral: I am not very satisfied with the Nifty, Bank Nifty and CNX IT.

The big move today happened in the CNX Nifty Junior which climbed 1.76 per cent. Therefore, instead of getting worried over the indices or large cap stocks, tomorrow would be a good day to set up a portfolio which has some midcap IT, pharma, infra and construction stocks. It is because midcaps are not showing any sign of weakness.

It seems that chances of weaknesses are restricted to the largecaps only. Therefore, in the coming 4-5 months could see midcaps outperforming largecaps. I do not think much can be made out of today’s action in the largecap indices as none of the stocks really showed leadership.
Your top five gainers are Cairn, Jubilant Food, JP Associates, Idea and Reliance Capital. There is no great leadership visibility now.