Amid the ongoing weakness in the stock market, Dhiraj Relli, Managing Director & CEO of HDFC Securities believes that one should stay invested in smallcap and midcap stocks. In an interview to Business Today, Relli says markets are the slaves of earnings. From last one year, HDFC Securities has been advising investors to be skewed toward the large caps because valuation in the mid and small cap have been frothy and the earnings growth trajectory is also looking weak, according to Relli. Advertisement

However, Relli believes that mid caps and selected small caps will do better from here onwards for the next 12 to 18 months.

"We are at the fag end of the correction. This correction is more driven by the valuation and earning growth trajectory," said Relli. Relli said HDFC Securities has

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