Large-Cap Stocks Set to Shine! Expert Recommends Private Banks and Telecom for Smart Investors

In an interview with Mint, Rahul Baijal, Senior Fund Manager at HDFC AMC, shared his insights on the stock market’s performance in FY25. He noted that mid and small-cap stocks have outperformed so far, but large-caps may offer better returns moving forward. Baijal also discussed the impact of global events like the US Fed rate cut, and which sectors he believes are worth watching.

Key points:

• Market Outlook: Mid and small-caps did well in the first half of FY25, but this trend could shift, favoring large-cap stocks.
• Valuation Concerns: Some small and mid-cap stocks are overpriced, creating opportunities for large-caps with solid earnings growth.
• US Fed Rate Cut: This could increase foreign investment in Indian markets, particularly benefiting large-cap stocks.
• Sector Focus: Baijal is optimistic about private banks, telecom, healthcare, and the power sector due to strong growth prospects and reasonable valuations.

He also highlighted how the HDFC Top 100 Fund is focused on long-term growth and value, with investments in sectors like financials, healthcare, and communication services.