Prashant Jain, Founder & CIO of 3P Investment Managers, said that demat accounts have grown from 3 crore to 20 crore since Covid, creating a retail-driven market where many new investors may be extrapolating past high returns. Jain expects largecaps to outperform smallcaps and midcaps because most fresh stock supply comes from non-Nifty names. He remains positive on banks, insurance, pharma, autos and software, while being cautious on consumer and utility sectors. He added that heavy inflows prevent markets from falling, while strong IPO supply prevents them from rising.
