Largecaps appear reasonably valued: Capitalmind CEO Deepak Shenoy

Investors entering equities should come in with a long-term horizon to ensure short-term fluctuations amid high valuations do not derail the wealth generation, says Deepak Shenoy, chief executive officer and founder of Capitalmind. In an interview with Abhishek Kumar, Shenoy discusses how domestic-focused sectors like manufacturing, defence, railways, domestic consumption, and infrastructure are ready for long-term growth. Edited excerpts:
 

What is your current view of the market? Are the earnings trajectories supportive of valuations?

Largecaps appear reasonably valued, with a price-to-earnings (P/E) ratio of about 23 times, and median earnings growth of 15 per cent year-on-year. Broader