The way the economy is going, it looks like a lot of response in the market will be based on policy decisions, said Mihir Vora, director chief chief investment officer at Max Life Insurance in an interview with CNBC-TV18.
“The good thing is that there is a clear realisation by the RBI , by the government that there is something that needs to be done. Therefore, we have the RBI which has been dovish for a couple of quarters and the government did the big bang corporate tax cuts. If this persists there will be more policy responses and that will sustain the market sentiment in the medium-term,” he added.
On banks, Vora said: “Most of the capex linked stories except for a couple of large names, they are all outside the Nifty. So my guess is that the mid and smallcap space might see a lot more action in the next two years.”
On IT sector, he said: “IT will continue to be a long-term story but whenever there is a positive sentiment towards local economy, people tend to switch away from IT, probably that’s what we have seen. We have seen FII
“So whenever one wants to be defensive one would go for IT and whenever one wants to play the domestic growth story then switch away from IT – that’s the pattern that we have seen again and again. I do not think the currency makes so much of a difference there,” added Vora.
He continued: “My bet is that a lot of foreign direct investment
On banking space, Vora said: “We are focused more on the largecap names because of the uncertainty. We do not have much exposure to NBFCs