Sanjay Sinha, the founder of Citrus Advisors, spoke to CNBC-TV18 about the market fundamentals as well as specific stocks and sectors.
“I see that the narrative of the market is now changing from the consumption-oriented stories to the more infrastructure related opportunities. This shift is probably taking a breather before it is full blown I would say unwinding or full blown impact on the stock prices because there is still caution in the market in the run-up to the elections. If the elections do turnout with favourable results, when I say favourable I mean in line with the market expectation of the NDA coming back to power, you might see CY19 delivering a much better performance from the infrastructure related stocks then you might see from the consumption-oriented stocks,” Sinha said on Thursday.
Speaking about the April MF data, Sinha said, “Post the lows that the midcap stocks and the midcap Index had touched on the March 18th 2019, there was a very smart rally that continued right up to the month of April. After that the sharp correction that we had seen, the Nifty Midcap Index has corrected to close to about 8 percent from the early part of the April I think it is going to leave a little bad taste in the mouths of the local investors. This might also have an impact on the flows. Much of the flows that have come to the mutual fund industry in 2018 has come into the midcap oriented funds and these funds have actually disappointed quite largely in terms of performance whether you look at it in terms of one-year performance or even shorter periods. So till you see some stability on the broader market, some good returns from the midcap and the smallcap oriented funds, the local participation might be a little hesitant in the mutual funds.”