Recency bias, global cues underpin elevated valuations: Sailesh Raj Bhan

Overall revenue growth in the fourth quarter (Q4) is likely to remain muted as sectors like consumer staples and information technology (IT) struggle for growth, says SAILESH RAJ BHAN, chief investment officer of equities at Nippon India Mutual Fund. In an email exchange with Abhishek Kumar, Bhan highlights that quick-service restaurants (QSRs), large banks, select utilities, and commodity businesses are a few market segments that are still sensibly valued. Edited excerpts:

The correction in the small and midcap space was short-lived, with indices bouncing back to record high levels. What is supporting the high valuations despite these concerns?

The high