Prefer midcaps over largecaps; see upside in metals, positive on pharma & autos: Ambit’s Dhiraj Agarwal

“This bull market is here to stay. It is not a demand supercycle, which is why many people tend to get a bit bearish saying that the demand is not as strong as 2003-07 period,” Dhiraj Agarwal, co-head equities, Ambit Capital, told CNBC-TV18. However, he added that the Indian market is expected to remain rangebound with an upward bias.

“Midcaps will have more steam over the next one-two years in terms of re-rating. Top sectoral bets at this point of time would be metals, pharmaceuticals and automobiles,” Agarwal said.

He continues to remain positive on metals, pharmaceuticals and autos. According to him, there is more upside for metal stocks. He believes that the lack of capacity addition in the past few years will keep prices higher, which will aid metal companies.