'Correction cleared some smallcap froth, but largecaps still better placed'

While the risk/reward remains favourable in the largecap space, investors with a high-risk appetite and under-allocation to smallcaps may consider increasing exposure to companies that have experienced stock price corrections, says HARISH KRISHNAN, co-chief investment officer and head of equity at Aditya Birla Sun Life Asset Management Company (AMC). In an email exchange with Abhishek Kumar, Krishnan notes that the AMC remains bullish on domestic-oriented businesses. Edited excerpts:

Has the recent correction in smallcap stocks brought valuation comfort? Which sectors within the smallcap space are most attractive right now?
 

Smallcap indices have corrected by almost 12 per cent from their