See greater comfort in largecaps compared to small and midcaps: UTI AMC CIO

Subramaniam says pharmaceutical and healthcare sectors are reasonably valued and are showing incremental improvements in their balance sheets

Valuations for the benchmark Nifty are in comfort zone but small and midcaps are expensive, says Vetri Subramaniam, chief investment officer (CIO), UTI Asset Management Company (AMC). In a telephonic interview with Abhishek Kumar, Subramaniam says pharmaceutical and healthcare sectors are reasonably valued. And, their long-term structural growth prospects are in place. Edited excerpts:

What is your view on the largecap space, considering its relative underperformance?

Going by our asset allocation frameworks, we are neutral on equities. The Nifty 50 is trading above its long-term average but is still within the comfort zone. On the other hand, midcap