Largecaps look more attractive after midcap, smallcap rally: HDFC AMC’s Rahul Baijal

At current levels, largecap category remains more attractive on relative valuations, in my view. The broader market indices (both midcap 150 and small cap 250) have seen a positive rally CYTD, and the headline indices are trading at a premium vs their long-term history, but the premium has significantly moderated from the highs of September 2024 levels. In the current environment, a bottom-up stock selection approach across the market cap curve is likely to be rewarded well, with quality blue chips offering a more favourable combination of earnings visibility, governance, and relative valuatio