Access Selected Content from Financial Times on Moneycontrol Pro

Access Selected Content from

Financial Times on Moneycontrol Pro

SENSEX
NIFTY 50
Hang Seng
Taiwan Weighted
MCX GOLD OCT 05
MCX SILVER DEC 04
USD/INR
EUR/INR80.0630

SENSEX
NIFTY 50
NIFTY MIDCAP 100
S&P BSE MIDCAP
Hang Seng
Taiwan Weighted
DAX
Nasdaq
MCX GOLD OCT 05
MCX SILVER DEC 04
MCX CRUDEOIL OCT 19
MCX NATURALGAS OCT 27
USD/INR
EUR/INR
GBP/INR
JPY/INR

Closing Bell: Market settles over 1% higher, Nifty ends at 12,987; JSW Steel, Tata Steel top gainers

Global stocks bull run to race on, spurred by cheap cash, vaccine hopes

Gold rate today: Yellow metal trades above Rs 48,500 per 10 gms; Silver falls

Rupee slumps 35 paise to 74.76 against US dollar

Auto

Buy midcaps, small caps; positive on housing finance co, cement: Sundaram MF

Updated : November 19, 2020 11:31 AM IST

S Krishna Kumar, Chief Investment Officer for Equity at Sundaram Mutual Fund believes the underperformance of midcaps and smallcaps will correct itself in the next 12 months.

“So we should position ourselves more there,” he said in an interview with CNBC-TV18.

“To a large extent, most of the negativity is behind us. We should continue to build on the equity end of the asset allocation. The rally is more into the largecaps given the liquidity that comes through,” he added.

“Slowly the midcaps and smallcaps will enjoy further run, it is going to be very good time for midcaps and smallcaps in the next two years,” Kumar said.

“Most of the uncertainties are now well behind us. From the domestic economy perspective, we seem to have come back to pre COVID-19 levels except a few high-intensive sectors of multiplexes or airlines which will come back in next quarter or so,” he said.

“Globally the uncertainty of the US election is behind us, the Fed has reiterated its stance to keep liquidity going for a couple of years and first signs of rate hike would be a year away,” he added.

On banking and financial stocks, he said, “Banking space, the small finance banks, the non-banking financial companies (NBFCs) have had a terrible run in the previous two years, so they are all catching up with the kind of liquidity that is available. That is a big area of financials that we would be positive on to add.”

“We are seeing a big thrust from the government on the housing space, so housing finance companies (HFCs), the building material space would be very good plays to play the next three-four years in the midcap and smallcap space,” he said.

According to him, two-wheeler plays would consolidate as they had a very good run. “I would think that incrementally a lot of the ancillaries which benefit from either a two-wheeler recovery or passenger car recovery is a place to be in now. You need to allocate more towards the auto ancillaries which have a multiple set of drivers at this point of time,” he said.

For more, watch video...

You May Also Like

Closing Bell: Market settles over 1% higher, Nifty ends at 12,987; JSW Steel, Tata Steel top gainers

Closing Bell: Market settles over 1% higher, Nifty ends at 12,987; JSW Steel, Tata Steel top gainers

Doorstep survey throws up 1,178 COVID-19 cases in Delhi's containment zones, densely populated area

Doorstep survey throws up 1,178 COVID-19 cases in Delhi's containment zones, densely populated area

Plum raises $4.1 mn in funding from Surge, Tanglin Venture Partners, others

Plum raises $4.1 mn in funding from Surge, Tanglin Venture Partners, others

Trending on CNBC-TV18

Live TV

recommended for you