Nimesh’s two calls for FY24-25 – large caps outperforming mid/small caps and quality outperforming value – have both worked out well in what has been a challenging year.
The last six months correction has made large caps attractive – he pegs Nifty fair value around 24,000 – almost 10% above current levels. Mid and small caps however have some more distance to cover to get to fair value.
He sees markets in FY25-26 playing out a lot like FY18-19: large cap outperformance over mid/small caps, quality outperformance over value – essentially a narrower market rally than what we saw between 2020and 2024.
His top sectoral pick for FY25-26 is healthcare and his longer term secular pick remains consumption. These are also the themes behind the AMC’s latest fund launches.
He is also positive on large private sector banks.
Bajaj Finserv Large & Midcap Fund completed its 1styear with a 9% return, significantly ahead of BSELarge&Midcap TRI which delivered about 3%. The theme of this fund – investing in strong moat quality businesses – has driven its outperformance and Nimesh expects this outperformance to continue as quality will remain in focus now.