Expect broader markets to do well hereon; prefer auto ancillaries over OEMs: Sundaram MF

S Krishna Kumar, CIO Equity, Sundaram Mutual Fund, believes there is a positive trajectory in the market. “Particularly in the broader end of the market – midcaps and smallcaps, we would continue to see the markets reflecting the strength of performance of these companies,” he said.

In terms of IT stocks, he said, “In a diversified portfolio, IT gives a lot of comfort in terms of having a lot of downside protection. There is a fairly strong order pipeline and visibility of growth over the next 12-18 months in terms of the business coming from people moving to cloud, digital transformation of businesses and many companies moving to work on artificial intelligence, machine learning and build in a lot of these into their businesses."

"So there has been a huge amount of improvement in the value added services that these companies are able to bring on to the table and it is those companies which are at the forefront of the emerging technologies that are doing well not the complete IT pack. We have to be more stock specific within IT space at this point in time.”