Sunil Subramaniam says: “Even within the mutual fund, almost 30% of the SIP book is in small and midcap space plus another 30% in multi-caps. So roughly half of the SIP book of Rs 17,000 crore is available for buying in the smaller end of the cap curve and even mutual fund institutional participation in the IPOs, would be having the money to deploy in good quality IPOs.
Sunil Subramaniam says: “I am optimistic that not only will the festival season numbers reflect well, the guidance in January for the next few months will also be good. The last two summers have been disappointing from a consumer discretionary perspective; hopefully this time around with the election around the consumer discretionary story will also step-up during summer.”
“When the FIIs come back into India, see, they are coming from a super safe market like the US to an emerging country risk oriented market. They will always tend to buy the safety aspects of the market, that is number one. Number two, if you see the composition of FII flows, passive flows are dominating. So, passive flows tend to buy the index.”
“I expect these consumption-related stocks, sector earnings to be better and some amount of capital drag to come in so that capital will push up the prices there. From a tactical point of view till the elections, rural-oriented consumption is probably going to get a little more capital and tactically, it makes sense to allocate a little more into that at this point in time.”