Quality mid-caps can outperform next year: Mirae Asset's Swarup Mohanty

As economic growth bottoms out, liquidity stays benign, corporate earnings pick up and risk aversion diminishes, we expect the valuation discount of mid-caps to narrow vis a vis large-caps in CY20

We expect gradual recovery in the demand environment next year, driven by low interest rates, government spending, and rural recovery, said SWARUP MOHANTY, chief executive officer, Mirae Asset Global Investments (India). He tells Ashley Coutinho valuation of mid-cap discount to large-caps may narrow in 2020 as risk aversion goes down. Edited excerpts:

What is your market outlook for 2020?

We expect gradual recovery in the demand environment in 2020, driven by low interest rates, government spending, and rural recovery. Globally, there seems to be some positive development on the US-China trade war, while on the domestic front we don’t expect