Investors weigh options as top firms turn expensive after lopsided rally

Investors have taken shelter in some of India's biggest companies amid a credit crunch and the slowest economic growth in six years

Investors are starting to weigh the merits of rotating into small- and mid-sized stocks after a few large companies drove a record-breaking rally in the main equity index.

“Leadership in India’s rally has been very narrow,” Tim Moe, chief Asia Pacific equity strategist for Goldman Sachs Group Inc., said last week in Mumbai. “Valuations are at the high end of the range, both in historical terms and relative valuation compared with the region as a whole.”

The S&P BSE Sensex has risen about 12 per cent from a low in September, with three members -- Reliance Industries, ICICI Bank and HDFC Bank