Midcap correction was a necessity in these market conditions, especially, if you look at the way the last calendar year had panned out, said Gaurav Mehta, Fund Manager of Ambit Asset Management.
"All midcaps were soaring through the roof. There was a bit of euphoria that was building into that space. As a result, you needed bit of a correction to take that froth out from the midcap space,” said Mehta.
“After the correction you are seeing a lot of midcaps and small cap, which are relatively well run businesses that are market leaders in the respective domain which are lower leverage, high return on equity (ROE), good secular growth businesses," added Mehta
He is of the view that there is more value in midcap and small cap now after this correction.