BJP now has better prospects considering the events of last month, says UTI MF's Lalit Nambiar

Lalit Nambiar, the executive VP and equity fund manager at UTI Mutual Fund, shared his views on the fundamentals of the market and RBI policy.

Speaking about the market, Nambiar said, “Broad narrative in the market seems to be that perhaps one particular party, perhaps the ruling party, has now better prospects considering the events of the last one month in terms of the South Asian region; the decisive action has been taken by the government on the external front. So, broadly that seems to be buoying up market sentiment and more certainty always contributes, but as somebody said, one week is a long time in politics. So we are still quite some time away from the elections. So it is a little premature for those parts of the market which are celebrating.”

On his expectations from the RBI's April meeting, Nambiar said, “It is a tough one to call. It depends on what RBI is trying to convey. However, it is not translating into major shift downwards as far as bank lending is concerned. Perhaps the public sector banks will act in terms of transmission. However, I think probably after April you will see some level of transmission and I presume that is the intention of the RBI. As far as the inflation numbers are concerned, I think there is some level of data which supports a cut, but my prognosis is as good as yours.”