Why Small & Mid Caps Are Beating Private Banks? Ashish Chaturmohta Explains

Dalal Street continues to witness a clear shift in market leadership, with small and mid-cap stocks outperforming large-cap names on the back of stronger earnings growth. While several private banks, including HDFC Bank, are trading at attractive valuations, concerns around deposit growth and credit-deposit ratios have limited investor enthusiasm. Ashish Chaturmohta, Managing Director, PMS - JM Financial, believes the earnings momentum in the small and mid-cap segment remains significantly stronger, making it the preferred space for investors. However, he adds that large private banks could emerge as attractive long-term opportunities once their operational challenges ease. Watch the full discussion to understand where the market's next leadership could emerge.