The Morning Brief Prashant Jain's Reality Checks on the Markets Bull Run, IPO Valuations and More
6 snips
Nov 27, 2025 Join Prashant Jain, co-founder and CIO of 3P Investment Managers, as he shares insights from his extensive career in fund management. He discusses whether today's market valuations are echoing historical bubbles and expresses his preference for large caps over small and mid caps. Jain warns of potential pitfalls in consumer and manufacturing stocks and analyzes the recent surge in IPOs. He also explores the implications of the AI boom and provides his expectations for the future of Indian equities, advocating for a diversified investment approach.
AI Snips
Chapters
Transcript
Episode notes
Overall Market Valuations Are Not Excessive
- Markets today are not at the excessive valuations seen in 1992, 2000 or 2007.
- Large caps appear sensibly valued while pockets like small and mid caps look expensive.
Prefer Large Caps Over Theme Stocks
- Prefer large-cap stocks over small and mid caps given current dispersion and valuation trends.
- Be cautious about popular theme-driven stocks that may be overvalued.
Small-Cap Surge Fueled By Low Base And New Investors
- Small and mid caps' strong post-COVID returns largely reflect a much lower base they fell to during the downturn.
- New investors who joined after COVID have driven disproportionate interest in these smaller names.