Alok Agarwal explained that on valuations, largecaps are trading at about 21 times one-year forward earnings compared to midcaps at 27 times. While this suggests that largecaps look cheaper, he believes the higher growth in midcaps justifies the premium. From a growth-adjusted valuation perspective, Agarwal said midcaps remain attractive, especially in sectors like consumer discretionary, chemicals, agrochemicals, fertilisers, real estate, EMS companies, hotels, hospitals and exchanges. He emphasised that instead of dividing the market by size, investors should focus on sectors and companies that are delivering strong structural growth.