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    Vinit Sambre of DSP tells us what's fueling the market rally

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    Vinit Sambre of DSP tells us what's fueling the market rally

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    Vinit Sambre, head of equities at DSP Investment Managers, spoke to CNBC-TV18 about what tactics fund managers are deploying in the current market and shared his investment outlook.

    Vinit Sambre, head of equities at DSP Investment Managers, spoke to CNBC-TV18 about what tactics fund managers are deploying in the current market and shared his investment outlook.
    “As equity mutual funds, by and large, we are always invested into equities but this time around our funds and that of across the industry, the cash levels are slightly higher waiting on sidelines. Even the FIIs were waiting on the sidelines for elections to get over but because of the changing narrative, taken this view of investing,” Sambre said on Friday, adding that the rally could also be linked to the fact that money has been flowing into emerging markets (EMs) and India could have looked relatively attractive now being a laggard earlier in terms of allocation.
    "However, we may continue to see volatility till elections because while macros and top-down may look good but the micro picture is not so attractive with fundamentals deteriorating. There is demand slowdown across a few segments like autos, infrastructure etc. So, till the time this slowdown is sensed, we may continue to see volatility".
    Talking about domestic fund flows into equities, he said, "There has not been much big trend change but there has been some change that small and midcap funds have started witnessing slightly higher allocation."
    With regards to the FII flows, Sambre said, "Historically, election outcomes have had a shallow shelf life and eventually people follow the fundamentals and growth in the economy. However, having a stable government at the Centre assured the continuation of the reforms, which would mean growth and drive money flows into equities, FIIs included."
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