Mid-, small-caps aren't overvalued; see opportunities there: S Naren

After a sharp rally over the past few weeks, the markets seem to be consolidating ahead of the March quarter earnings season. S Naren, executive director and chief investment officer, ICICI Prudential Asset Management, tells Puneet Wadhwa that even though the markets are fully valued, they may not correct. However, there could be volatility in the short term, given the general election. Edited excerpts:

What’s your market outlook ?
 

The markets are no longer cheap, but there are interesting/selective investment opportunities in mid- and small-caps. However, the difference between 18 months ago and now is that the US Federal Reserve