New Delhi, Jan 21: Without doubt, Ayodhya will become a major spiritual tourism destination. The potential for tourism-related business is enormous and has attracted investors into hotel, travel and other tourism-related stocks, V.K. Vijayakumar, Chief Investment Strategist, Geojit Financial Services, said.

While appreciating the long-term potential of investment, investors should not go overboard chasing these stocks that have elevated prices.

Many stocks in this segment have run up too much too fast and have shot up by more than 100 per cent in just a few weeks.

This is a sentiment-driven rally triggered by retail exuberance, he said.

Broadly, the valuation of the mid and small cap segments are too high, unjustified, almost in frothy territory.

This mid and small cap frenzy is partly driven by the newbie retail investors who are chasing these stocks and partly by mid and small cap mutual funds to which inflows are strong and sustaining, he said.

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Ayodhya tourism has excellent long-term prospects, investors have to be careful about the valuations. Large caps in IT, capital goods, telecom and selective private sector banks are safer bets now, he added.

(IANS)