S Krishna Kumar, CIO-Equity at Sundaram Mutual Fund, spoke to CNBC-TV18 about what he expects from the Modi government.
"We believe the government will take measures both on the fiscal side to pump-prime, do some rate cuts on GST create some demand and on other side nudge the RBI to cut rates, cut CRR and try to bring some liquidity into the market – those would help to improve economic growth framework,” Kumar said on Thursday.
"The house would now focus more on domestic plays, domestic cyclicals, and rate sensitives etc., because there is tremendous value in them. This way one should rebalance portfolio", said Kumar.
When asked if the election results would change anything for them from a portfolio standpoint, he said, “The fund house had been well positioned for this kind of an event and cyclical recovery. We have overall 25-27 percent exposure to the industrial, cement, infrastructure, capital goods plays and 30 percent exposure to banks and financials and rest is well diversified across other ideas. So, we are well positioned at this time to ride this change in terms of investor portfolio and positioning, so we will not do too much in terms of big changes.”