For the Nifty, the all-time high would come soon but on a return basis, it would be a year of moderate returns for the broader market because of a lot of things are playing out, said Ratnesh Kumar, MD and CEO, BOBCAPS.
“So, if we get a single digit positive return from here for the rest of the year, I would be happy for the broader market,” Kumar said.
It is a good time to look at midcaps as a lot of the momentum and valuation froth has been taken out, he said.
“Many of the midcaps are fundamentally in good businesses, seeing 20-30 percent earnings growth and now the valuation forth is out, so good time to look at midcaps,” he added.
According to Kumar homebuilding stocks, in general, have done well over one to two years and will deliver 15 percent plus growth for good companies.
From the autos, Kumar prefers to be in the passenger car segment than the two-wheeler space.
"For two-whelers the demand fundamentals are strong but price competition and margin impact is worrying," he said.