Pre-election rally has more legs; stay cautious in small-caps: Apurva Sheth

The Sensex to SmallCap ratio is trading near its lowest levels since 2008. This means that smallcaps have outperformed relative to large-caps, Apurva Sheth said in this interview

With barely a month left for the results of the General Elections 2024 to be announced, APURVA SHETH, head of research at SAMCO Securities tells Tanmay Tiwary, in an email interview, that there may be more legs to the markets' rally. Edited excerpts:

How do you see markets playing out in the run up to elections?
 

Historically, the market has delivered an average gain of 14.3 per cent six months prior to general elections' results being announced. The S&P BSE Sensex, so far, has returned 8.4 per cent. Thus, with only one month remaining for results to be