Largecaps are now the crown jewels, according to JioBlackRock AMC’s Rishi Kohli, who flagged a widening valuation gap that has stretched over the last 10‑15 years. The shift, he said, reflects the changing composition of the index, with many new‑age companies that were absent a decade and a half ago now pulling the index toward higher multiples. NEWPAR Kohli added that midcaps have enjoyed steadier earnings delivery, whereas smallcaps have surged only in recent months. Largecap earnings growth, however, has been comparatively subdued, a fact that, according to him, underpins the current risk‑reward calculus. Technical indicators hint that smallcaps may be nearing a turning point, but he cautions that a reversal is not imminent. NEWPAR The firm’s quantitative and systematic sector rotation fund has stayed the largest underweight on IT since launch 9‑10 months ago, a stance rooted in margin pressures and a modest growth outlook for largecap IT companies. Kohli points to the limited contribution of AI‑related business to most Indian IT services firms and warns that the financial payoff from AI could take another one‑to‑two years to materialize. NEWPAR In short, JioBlackRock remains tactical, encouraging investors to rotate between sectors rather than rely on a sustained rally across the broader market. The firm’s current stance on IT, coupled with the widened largecap valuation gap, signals a strategic pivot that market watchers should track closely as valuation dynamics evolve.