Small, Mid-Caps Face More Pain; Large-Caps Fairly Valued: Prashant Jain

• Prashant Jain, Founder and CIO of 3P Investment Managers, predicts continued selling pressure for small and mid-cap stocks.
• He believes valuations in the small and mid-cap space ran ahead of fundamentals post-COVID rally, and adjustment is incomplete.
• In contrast, large-cap stocks are seen as fairly valued, offering a favorable risk-reward balance.
• Jain expects Nifty to deliver low double-digit returns (11-12%) over a three-to-five-year horizon.
• He attributes market excesses to new investors entering post-pandemic and warns against FOMO in IPOs.

Why It Matters: Small and mid-caps face further correction, while large-caps are fairly valued for modest long-term returns.