Broader market rally may not continue for long

New Delhi: The concern in the market now is the excessive valuations in the mid- and small-cap segments, says VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services. Retail exuberance and sustained flows into the mid- and small-cap mutual funds (MFs) are driving this rally, which has slipped into a frothy zone.

This broader market rally can’t continue for long, he said. Safety is as important as returns. Undoubtedly safety is in large-caps now. Going forward, large-caps are likely to outperform mid- and small-caps, he added.