See significant value in midcaps for long term investors, says Punita Kumar Sinha

Punita Kumar Sinha, the founder and CIO of Pacific Paradigm Advisors, is of the view that the Indian market has underperformed major global markets and going forward as well the uncertainty around general elections could keep a lid on the market.

"Now there seems to be significant value emerging for long term investors in the Indian market, especially in the midcaps where the valuations gap between them and large caps have widened. One can look at midcaps where there is quality and growth is available at a reasonable price.

In the largecaps too there are stocks in certain sectors that look good, particularly the financials," said Sinha.

“Right now at least for all foreign investors the action is all focused and the headlines are focused on China,” she said.

Talking about India growth, she said, "It looks like the worst is behind us, the financial sector crisis seems to have subsided, and inflation worldwide is not going up, China is easing liquidity and giving fiscal stimulus – all this will help growth pick up. Although the government spending will be slow till the new government is formed but the private sector is stepping in, credit growth will pick up and so things will improve going forward."

With regards to autos, she said, "Rural-oriented autos should do well on the back of stabilization in interest rates and rural spend. Moreover, steel prices have also come off."