We prefer large-caps that could gain from govt initiatives: Manish Kumar

The blip in the earnings growth due to demonetisation and GST implementation is expected to yield tangible benefits in the medium term, says Kumar

The past year’s rally in the markets has taken valuations to the higher end of the historical band. In an interview, MANISH KUMAR, chief investment officer (CIO), ICICI Prudential Life Insurance Company, tells Vishal Chhabria and Ashley Coutinho the mid- and small-cap space looks frothy. So, one has to be prudent in investment decisions. Edited excerpts:

The markets have rallied sharply in the past year, despite significant headwinds. At the same time, we observe the global equation is not encouraging. Does this worry you?  

The current rally has been gradual and fairly widespread across sectors and we are cautiously optimistic. Many