Smallcaps not in extreme bubble territory: IIFL Securities chairman & MD

Smallcap stocks across sectors have consistently exhibited higher earnings growth than largecap stocks over the past two decades. This, to some extent, suggests that we are not in an extreme bubble territory, according to R VENKATARAMAN, chairman and managing director of IIFL Securities. In an email interview with Sundar Sethuraman, Venkataraman observes that markets will also receive support from monetary easing globally. Edited excerpts:

With the significant rally in the markets, there’s a considerable amount of optimism embedded. How do you interpret this? Have the markets become overly exuberant, or does India’s growth potential justify such a valuation premium?
 

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