Opportunities in smallcap and midcap stocks increasing: WhiteOak's Trupti Agrawal

Trupti Agrawal, a senior fund manager at WhiteOak Capital, has highlighted increasing opportunities in small-cap and mid-cap stocks as market conditions stabilize. Following a prolonged consolidation phase of 1.5 years, recent corrections have made these segments more attractive due to improving fundamentals and market inefficiencies. The slowdown in earnings downgrades and the resolution of trade deal uncertainties with major partners like the EU and US, which account for approximately 37% of India's exports, are pivotal in shaping a constructive market outlook. The Reserve Bank of India has also revised its GDP growth forecast for FY2026 to 7.4%, supported by domestic demand and ongoing reforms. Despite recent challenges, India's equity markets are trading near ten-year averages, with earnings growth expectations remaining robust at 14-15% over the next couple of years. While the consumption sector has shown mixed results post-GST cuts, certain categories, particularly automobiles and consumer staples, have reported strong performance, indicating potential for further recovery and growth as market dynamics evolve.