New Delhi, Jan 18 : Mid-cap and Small-cap stocks in general have become more expensive after the recent runup. Many weak (low growth plus low quality) mid-caps and small-caps are in bubble zone and caution is advised, says Vinay Paharia, CIO, PGIM India Mutual Fund. Strong (high growth plus high quality) mid-caps and small-caps may still present opportunities for long-term investors. On a relative top-down basis, we are finding better upside in large-cap stocks versus mid-cap and small-cap stocks and see lesser earnings volatility for domestic consumption-oriented versus export-oriented sectors, he said. In the near-term, premium valuation in the mid and small-cap segments of the market, any adverse union election results and rising geo-political issues are the key near-term risks to the Indian equity markets. Post the sharp runup in markets, we are cautious on the near-term return potential of the equity markets, while remaining optimistic for the medium- to long-term, he said. The Indian equity market continues to outshine many global peers on the back of strong domestic inflows, encouraging economic data, strong corporate earnings growth and stable government policy. The US rate cuts, weakening USD, falling oil and other commodity prices bode well for the Indian economy and earnings growth of domestic oriented corporates, though global growth slowdown may adversely impact the earnings of export-oriented corporates in the near-term, he added. (Sanjeev Sharma can be reached at Sanjeev.s@ians.in) /IANS