'Rally in mid-, small-cap segments led to valuation premium'

The sharp rally in the mid- and small-cap segments has led to a valuation premium developing in many companies, which could hamper return potential as markets take a breather.

- Ujjval Jauhari

"On a year-to-date (YTD) basis up to 31 August, the rupee has lost less than 1% versus the dollar" - Shreyash Devalkar Head, equity, Axis Mutual Fund

One of the reasons why the broader markets have outperformed is because the mid- and small-cap space is filled with high-quality companies which are able to scale businesses quickly, Shreyash Devalkar, head, equity, Axis Mutual Fund, said in an interview. Edited excerpts:

How do you see rising crude prices and currency volatility impacting the Indian markets?