Market will be nervous and volatile till election results, says Sundaram Mutual Fund

Sunil Subramaniam, MD & CEO of Sundaram Mutual Fund, spoke to CNBC-TV18 about the market fundamentals and quarterly earnings.

On market fundamentals, Subramaniam said, “It is a combination of the verdict on May 23rd and the pressure that we are seeing in the global space. A lot of money came up for May 23rd because there were positive signals around the continuity of the government but now the market is slightly nervous because it is too close to that event. There is already a lot of FII money, USD 9 billion has come in year-to-date, almost USD 3 billion in this quarter. So that is already enough money in the market and domestic mutual funds are very cautious. I don’t think they are taking extra calls right now.”

Talking about the fourth-quarter earnings, Subramaniam said, “The earnings season has also been iffy, broadly it has been okay. I think the guidance has been good but they will wait for the election to commit so that is nervous and obviously the international nervousness is adding to the thing. Market will continue to be nervous and volatile till May 23rd.”