'Pockets of mid and small-cap indices are showing exuberance and are discounting even FY23 valuations now.'

The adverse impact on the margins of auto, consumer staples and consumer durables sectors will be counterbalanced by an earnings uptick in the metals, cement and oil & gas sectors.

While Mukesh Ambani-led RIL posted a 108 per cent YoY rise in profit after tax for Q4FY21 at Rs 13,227 crore, it fell short of Bloomberg estimate of Rs 13,704 crore.

'Investors should be careful in getting carried away; although a reversal of IPO frenzy this time is taking longer than in the past.'

The stock, which is a play on the growth story of Indian Railways, has corrected 15 per cent from its 52-week high level of Rs 2,072.95 scaled on March 9. Yet, this has not deterred brokerages from holding a bullish view on the stock.

Jhunjhunwala holds a stake in more than 30 listed firms.