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Future Generali positive on midcaps, says underperformance in India equity market due to 2019 elections

Updated : April 09, 2019 01:12 PM IST

Future Generali India Life Insurance on Thursday said the house is positive on midcaps and added that the uncertainty surrounding the forthcoming general elections is the main reason for the underperformance of Indian equity market compared to other markets globally.

In an interview to CNBC-TV18, Jyoti Vaswani, chief investment officer said, "From here onwards, it would be a bottom-up approach for midcaps, where stock selection would happen on basis of fundamentals."

According to her, post the elections, good quality midcaps would perform better, "The house would focus on a mix of value and growth plays in the midcap fund. Also, there is a lot of value in the infrastructure space."

With regards to banking space, Vaswani said, "Both corporate and retail banks are expected to do well this year and so it would be a mix of both in their portfolio."

"We have moved from the recognition phase to the resolution in the banking space. So the entire non-performing assets (NPA) issues from here on should get moderated and fresh slippages would be on a much lower side. Moreover, credit offtake also looks good at around 15 percent," she added.

On non-banking financial companies (NBFCs), Vaswani said some of the larger ones have managed the liquidity crisis well and the house would not completely avoid the space and look at select companies.
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