Prefer large caps in terms of a portfolio shift: ICICI Direct

Pankaj Pandey, Head of Research, ICICI Direct in a chat with ET Now talks about large cap stocks.

We have seen Jain Irrigation give some stellar returns over the last five or six sessions and Finolex Industries has also followed suit. At current levels with 1053 on Jain or a 6870 on Finolex, would you initiate a buy?

See as an overall strategy, what we feel is that investor should return to large caps. The reason why we feel is that the upsides or the downsides appear in single digit for the market, so in that sense, market is evenly poised for an upside or a downside but if somebody needs to be positive again, what we will see is that the overall outlook will get revised and then again we will start seeing large caps attracting far more money as compared to mid-caps or small caps because the last leg of the rally is usually seen in mostly small caps and that we have already seen.

A similar kind of a pattern we had observed in January 2008 as well, so in that sense, I will be a bit cautious in terms of mid-caps or small caps and in terms of a portfolio shift, we would prefer large caps at this moment in time.