New Delhi, September 24, 2026 (Yes Punjab News)
India’s large-cap stocks are offering relatively attractive valuations compared with mid- and small-cap segments, with potential buying opportunities emerging in select pockets of the country’s top 100 companies, particularly banks, infrastructure-focused NBFCs, power and energy-transition businesses, according to a report by Omniscience Capital.
The report noted that sustained investment flows into small-, mid- and multi-cap schemes, coupled with continued selling pressure in large-cap funds, have resulted in a concentration of equity inflows towards mid- and small-cap stocks. It cautioned that this trend warrants attention given the premium valuations in these segments.
“Opportunities for long-term investing are emerging in mispriced pockets of the top 100 companies, which could potentially deliver better performance over the next three to five years,” said Ashwini Shami, President and Chief Portfolio Manager at Omniscience Capital.
Ahead of the festive season, the report identified banks, infrastructure NBFCs, housing finance companies, power companies, select energy-transition stocks, business services, engineering, procurement and construction (EPC) firms and select infrastructure companies as segments offering growth prospects at comparatively attractive valuations.
According to the report, large-cap stocks remain broadly investable, except for certain overvalued areas facing structural headwinds from artificial intelligence or broader macroeconomic factors.
While the small-cap index is considered fully priced, the report said disciplined bottom-up stock selection could still uncover stock-specific opportunities from a universe of nearly 1,000 companies.
The report also highlighted global macroeconomic risks. It said persistent US inflation, which remains above 3 per cent, along with additional inflationary pressure linked to the US-Iran conflict, has kept interest-rate concerns elevated. US 10-year Treasury yields have surged to around 5 per cent, approaching levels last seen in July 2007.
The report expects another US Federal Reserve rate increase before the end of the year, potentially at its December meeting. In India, elevated crude oil prices and a weaker rupee are adding to inflationary pressures and could increase the possibility of an RBI rate hike at its next policy meeting.
Foreign institutional investors (FIIs) turned net buyers in July and August 2026, but the report said their purchases were significantly smaller than the selling recorded during the preceding four months.
FIIs returned to selling in September as US Treasury yields rose by 20-30 basis points over the previous two weeks. Continued outflows from large-cap mutual fund schemes have also offset the recent FII buying, it added.
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