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    Rs 25,000 crore AIF wouldn't move the needle for realty, says Saurabh Mukherjea of Marcellus

    market | IST

    Rs 25,000 crore AIF wouldn't move the needle for realty, says Saurabh Mukherjea of Marcellus

    The Rs 25,000 crore alternate investment fund announced by the government to help complete the stalled housing project would not "move the needle that much for a giant real estate industry in the country", said Saurabh Mukherjea, founder of Marcellus Investment Managers.
    “The announcement yesterday is a shot in the arm not just for real estate developers but also for the entire housing finance industry, NBFCs which have financed real estate developers. The only word of caution is the amount looks modest," said Mukherjea in an interview with CNBC-TV18.
    "It is a good step forward but would not over-emphasise its importance in turning the tide for housing finance and NBFCs," he added.
    Talking about investment ideas, he said the house has begun putting money in the two-wheeler space as the October numbers were cheerful. “It is relatively clear that given the balance sheet strength, free cash generation ability of the sector, there are buying opportunities selectively in the auto sector,” said Mukherjea, adding that the house is also upbeat on the auto ancillary space.
    He said pullback in Titan also gives an interesting entry point.
    With regards to Infosys, he said, "This whole situation around the whistleblower issue presents an interesting opportunity for people who know the IT sector better."
    With regards to the market overall, he said government reforms and quantitative easing money is driving the market up but on the other side, we have a serious economic downturn with specific problems in the financial services sector.
    “As long as the government keeps the reform momentum switched on, this market will continue grinding up," added Mukherjea.
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