‘Small caps can throw up major winners’

Veteran investor Shankar Sharma stays “extremely bullish” on selective Indian small-cap stocks

- Nishant Kumar nishant.kumar@htdigital in

Veteran investor Shankar Sharma stays “extremely bullish” on selective Indian small-cap stocks and has invested both in listed and unlisted counters in the category even as the domestic markets have under-performed large global peers in the past year.

“I am very bullish on Indian technology companies, which are small in nature but are building tech which can become game-changing out into the future,” Sharma said in an interview with Mint. But he calls them “extremely risky” bets for retail investors.

“But if you have a decent understanding and you can spread your risk across several companies, you are going to be rewarded by some major winners in India over the next few years,” he said.

Edited excerpts:

Both India and America came up as markets that would not do well, whether in absolute terms or in relative terms, on my “Lake of Returns Theory” back in the middle of 2024, and the performance of both of these markets is not surprising in the context of what the Lake of Returns Theory postulated.