Mid & smallcap valuations much better than largecap from a 3-5 year perspective, says Kotak MF

Harsha Upadhyaya, CIO-equity at Kotak Mutual Fund, is of the view that the extreme divergence that developed between the large and midcap valuations throughout 2018 is now correcting.

"Moreover, the base case assumption that the market participants are making today is that there will be no escalation of geopolitical tensions and we would see a stable government in place post general elections," Upadhyaya told CNBC-TV18 in an interview on Thursday.

“Given these assumptions, the market has changed their overall sentiments and there has been some improvement in mid and smallcap stocks prices,” said Upadhyaya.