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Smallcaps a decent space to invest provided chosen wisely: Shankar Sharma

Updated : June 04, 2021 17:54:00 IST

Shankar Sharma VC & Joint MD of First Global is optimistic on midcap and smallcap space. He believes small-caps is a decent space to invest in provided you choose stocks wisely.

"The midcap and smallcap trade started in January 2020. 2020 was a very strong year for midcaps, the index was up 9 percent and then COVID happened and everything fell. However, the recovery in small-caps and midcaps was tremendous. So we have been optimistic about this space. This time again because of the overall loosening of credit which we saw last year after the COVID, inevitably it will come to the riskiest ends of the market. So when you have rates cut down to zero, the money is going to flow into venture capital deals and so those kinds of highly risky areas of the market and in the listed space that is the small-caps. I don't think the smallcap rally is done yet. I do believe small-caps is a decent space provided you choose wisely. I think it still has got plenty of legs."

He also remains positive on the apparel and inner-wear segment.

"One of the areas which we identified and which we bought also is inner-wear. Globally people stopped buying clothes that they were going to wear to go out because you are not going to go out much anyway. So sitting at home what are you going to be most comfortable in? It was inner-wear and that trend in numbers has been really strong. So we said we should look at those plays and there are a few inner-wear companies listed in India, we own a few and they have done very well. So that is like a new area or a set of stocks that we identified."

Watch the video for more.

Disclaimer: The views and investment tips expressed by investment experts on CNBCTV18.com are their own and not that of the website or its management. CNBCTV18.com advises users to check with certified experts before taking any investment decisions.
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