UTI AMC's V Srivatsa warns against midcap valuation, says risk-reward better in largecaps

UTI AMC's V Srivatsa says largecaps offer better risk-reward than midcaps, which trade at a record-high 50% premium to largecaps. Nifty 50 trades at about 17x one-year forward estimates in line with five-year averages, with around 14% expected earnings growth for next year. He flags capital goods, consumer durables, defense and healthcare as overvalued pockets, while banks, insurance, IT and telecom trade below mean valuations. The biggest risk flagged is global geopolitical uncertainty, though he expects macro stability from stabilising oil prices and rupee.