Largecaps fairly valued, but mid & smallcaps still need correction: Shreyash Devalkar

Largecaps stable; mid/smallcaps may correct more.

Earnings downgrades are likely, but much of it is already priced in; focus shifts to FY27 outlook.

Stock-picking is key; financials and pharma favored over overvalued export and industrial themes.

IT sector outlook is stable; AI may expand opportunities more than it threatens margins.