Top-10 stocks will start to outperform: DSP Netra

THE OUTPERFORMANCE PHASE is restarting for the top 10 companies in terms of market capitalisation, DSP Netra said in a report citing recent trends.

- FE BUREAU

It said only a source of relative attractiveness can be found in the large-cap universe since these stocks are not cheap on an absolute basis.

According to the report, the share of top 10 stocks relative to the total market capitalisation is hovering near all-time lows.“Considering large excess returns delivered by the non-largecap universe and the narrative that ‘domestic flows’ would not allownon-large-cap universe to ‘fall’, it is not easy to use this rare occurrence to advantage,” it said.

The fund house sees the large-cap universe becoming ‘a hiding place from the virus of volatility which infected the market in the last quarter of 2024’.