“The downtrend in the Indian stock market, driven by elevated crude prices, IT stock selling, Fed rate hike fears, and a booming IPO market, is likely to continue in the near-term. However, this weakness is creating opportunities in fundamentally strong large-cap stocks, which are currently undervalued. A reversion to the mean is overdue in mid- and small-cap segments, which could facilitate a large-cap rally, possibly by month-end after mega IPOs conclude and refunds return to investors. Recommends shifting portfolio weightage towards large-caps for favorable risk-reward.”