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Reliance Nippon Life AMC's Manish Gunwani: Expect midcaps to continue outperforming the Nifty

market | Sept 19, 2019 2:26 PM IST

Reliance Nippon Life AMC's Manish Gunwani: Expect midcaps to continue outperforming the Nifty

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Manish Gunwani, chief investment officer of equity investments at Reliance Nippon Life AMC, is not surprised that Nifty is not outperforming the midcaps anymore and expects that to continue broadly, he said in an interview with CNBC-TV18.

Manish Gunwani, chief investment officer of equity investments at Reliance Nippon Life AMC, is not surprised that Nifty is not outperforming the midcaps anymore and expects that to continue broadly, he said in an interview with CNBC-TV18.

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“Fundamentally, our belief since last 2-3 months has been that the midcap underperformance to our mind from a fundamental sense is over. So from a 2-3 year perspective we do not expect the midcap index to trail Nifty at these kind of valuations,” he said, adding that looking at midcap stocks from bottom-up basis, even the stocks that are not cyclical and have got steady earnings the price to book is quite attractive versus a lot of largecap companies.
Talking about growth, he said: “We should stabilise and growth should marginally improve from here because we see domestic monetary conditions easing.”
With regards to the auto sector, he said at this point there are not too many greenshoots but stocks are down 50-60 percent from top and the stocks have fallen faster than the volume sell-off in a lot of the parts of auto. We may not see high volume growth for at least 12-18 months, so we are not overweight in the space but there are select parts where we think they are close to the bottom, he added.
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