There is caution among retail investors, says Sharekhan's Gaurav Dua

The one-way rally in the broader market lasts for 17/18 months (on average) and is followed by a corrective phase of 18-24 months

With the broader markets doing comparatively better than their large-cap peers, Gaurav Dua, senior vice-president, head-capital market strategy and investment at Sharekhan by BNP Paribas, in conversation with Puneet Wadhwa in Mumbai, says one can invest gradually in good-quality mid- and small-cap companies now, and the returns could be quite handsome over the next two years. Edited excerpts:
 
What is your interpretation of how the markets have played out these past few months?
 
Since July 2021, the National Stock Exchange Nifty has largely consolidated in a broad range of 2,000 points, ranging between 16,000 and 18,000, notwithstanding runaway