According to Manish Gunwani, chief investment officer, equity, at Bandhan Asset Management Company, the large cap index is more heavily weighted toward the domestic cycle—financials, fast-moving consumer goods and automobiles. “But small caps offer a much broader opportunity set. Investors can play themes such as electrification, data centre capex, transformers, HVDC (high voltage direct current) equipment and specialized exporters—opportunities that are not adequately represented in large cap indices,” he said.