I would say the pockets that were... the market is, as you said, barely... it's not like a bear market or anything. We're probably, depending on which index you're talking about, the smaller caps have done worse. Nifty year-to-date is like flatish to down half a percent or something. So, within small caps as well, there's certain pockets which are down 30, 40, 50%, but they were the ones where they had got overstretched. And now they've come back to maybe closer to what are more normal levels. As a basket, I'm talking about, within that, some more, some less.
Yeah, certain sectors like consumer, the last several years haven't seen any... Yeah, so in the power sector, in the manufacturing sector, in the defense sector, you know, there was that extra euphoric assumptions that were built in. That froth has been taken out. Otherwise, see, anyways, all the time there are names that become very attractively valued even in the absence of massive correction, and with the correction, you're right. There's some segments, particularly, I'm thinking about stock-specific. So, let's say capital market intermediaries. Some of them, I believe, have been beaten up as if, you know, capital markets aren't going to grow again. So, when on the team also we discuss, you know, people have become more skeptical. Okay, let's assume a flat market from year to next year, two years. Like, how can you assume a flat market? From today you cannot assume a flat market. Yes, from three months ago, okay, you can assume a flat market because markets are down 10%. So, some of these companies where the assumptions have become very cautious. Yeah, there are opportunities, no doubt. Some of the industrial companies where, because of a little bit of lull in the capex, you know, the assumptions have become very cautious. Yeah. So, there we do find opportunities on a specific basis in some of these sectors.
The MNC ones would never be cheap, right? So, they've become cheaper than what they were, but they're not technically cheap. Yeah. So, MNC ones in the industrial sector, some of them have pulled back quite a bit. Okay. Obviously, they had gone up like that as well, and there are again select opportunities there as well. Whereas on the consumer side, they never participated. Mhm. Yeah, some of these leading consumer names are barely up compared to five years ago. Agree, agree, agree. And massively trailed the market. Yeah. So, MNCs as a basket tends to be less volatile, or a lower beta. So, they haven't pulled back as much, but they've also not gone up as much, other than the industrial sector. Got it.
Yeah, actually, so before I come to capital markets, since you brought this up, staple companies, and we speak to a lot of homegrown, India-grown small food companies, staple companies who are innovative, marketing specific pockets, catering to urban class, higher margin, etc., maybe, or rural specific pockets, and are eating away the market share of the long-established distribution chains of the pan-India players. Can more and more of this continue, and therefore would large staple companies consistently see their margins and profitability metrics getting eroded, and therefore multiples coming off? So, they may grow earnings 6, 7, 8% every year, but multiple niche is the only way to do that. Could that be the template for the next few years as well?
