homemarket Newsstocks NewsCyclical sectors could see 'significant upside' in coming months, says Sundaram MF
Cyclical sectors could see 'significant upside' in coming months, says Sundaram MF
Sunil Subramaniam, MD & CEO at Sundaram Mutual Fund, spoke to CNBC-TV18 about the mutual fund investments and stock market returns.
Sunil Subramaniam, MD & CEO at Sundaram Mutual Fund, spoke to CNBC-TV18 about the mutual fund investments and stock market returns.
On the NAVs, Subramaniam said, “Customers who have already invested in mutual funds, we have a daily report card. So, the NAVs, when they show a sharp 3-4 percent jump, customer satisfaction increases dramatically. So, as a customer facing entity, it is a very good thing.”
“You have seen that midcaps and smallcaps over the last one year, prior to this one day rally, were down about 21 percent in smallcap and 11 percent in midcap. However, in just one day that has come down to single digit in midcap and about 15 percent in smallcap. So, customers who have been investing, either through SIP or normal, would have been facing a little bit of pain, would have been worried about it, my exposure what to do. This jump has created a lot of relief in a lot of customers,” Subramaniam added.
On the individual sectors, Subramaniam said, “For us, the key sector with a significant upside would be cyclical sectors and related to that. When I say cyclicals, I am talking about corporate banks. The capacity utilization in the economy is just inching up beyond 76 percent with just purely a government action so far. I think that though consumption has slowed down, I think there is still incremental consumption happening and a lot of sectors where capacity utilization is inching up to 85 percent plus levels. Hence, we expect a restart of the capex cycle from the private sector not too far away, let us say 6-9 months.”
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