Page 2 - Large-caps

Bharti Airtel's mega issuance buoys 2020 outlook for fundraising

Market players say access to equity capital will give companies the confidence to chalk expansion plans to benefit from an upturn in the economy

Stay diversified with multi-asset funds, invest with 5-10 years in mind

But investors who want the flexibility to alter their asset allocation may avoid these 3-in-1 funds

Over half of large-caps underperform benchmarks

The underperformance increases for large-cap funds over a 10-year period (59%), but decreases somewhat for mid- and small-caps (50%)

After 3 yrs, spotlight back on large-caps

Thinning valuation gap between these and mid-caps indicates a shift in investors' preferences

After 3 years, spotlight back on large-caps

After nearly three years of trading on the BSE at a significant discount to the benchmark Sensex, the asking rate for large-cap stocks is increasing once again. The S&P BSE Sensex currently trades at 17.3 times the estimated calendar year 2017 earnings, while the BSE Mid-cap index is at 18.7 times, by Bloomberg calculations. The premium commanded by mid-caps vis-a-vis the Sensex has thereby reduced to 7.5 per cent. Mid-caps had started trading at a premium to large-caps from 2014 onwards. The BSE Mid-cap index premium over the Sensex, 10.3 per cent in 2014, rose to 28.7 per cent in 2015 and was 21.3 per cent in 2016.Experts say the changing trend is a positive one and in favour of large-cap stocks. "It is a combination of money chasing large-caps, led by Reliance Industries, and investors realising there aren't too many affordable pockets in the mid-cap space," explains Pramod Gubbi, head of equities at Ambit Capital. He adds that in a typical bull market, there tends to be an ...