Analysts play it safe; prefer safety of large-caps amid multiple headwinds

Analysts suggest that the overall market valuation has become attractive after the recent correction and investors can start buying large-cap stocks from a medium-to-long term perspective.

Rising inflation and the rate hikes by central banks, geopolitical developments, a sudden spike in crude oil prices as Opec+ slashed output, possibility of sub-par monsoon back home as El Nino fears rise are some of the headwinds, market analysts said, could keep the overall market sentiment in check over the next few months.

Against this backdrop, they prefer to ‘play it safe’ for now and are favouring the large-cap stocks over their mid-and small-cap peers.

Large-cap stocks, according to Rahul Arora, chief executive officer for institutional equities at Nirmal Bang, are likely to outperform the mid-and small-cap segments going