Markets in a correction mode: It's your portfolio. Make it large!

The run-up in the markets in these last few months, analysts at HSBC said, has made investors nervous about the markets amid multiple headwinds

Rising oil prices that can stoke inflation fears, firm bond yields and a patchy monsoon back home can trigger a market correction in the short-to-medium term, feel analysts, who suggest investors will be better off sticking to large-caps stocks.

"India's strong outperformance meets some resistance in the form of rising crude prices, firming US bond yields and risk of inflation. Mid-cap rallies also warrant some caution and leave large-caps relatively more appealing and candidates for re-rating," wrote Herald van der Linde, head of equity strategy for Asia Pacific at HSBC in a recent coauthored note with Amit Sachdeva and Anurag