HSBC Global Asset Management remains positive on infrastructure players

Liquidity support to the market will continue in the near future through ETF and SIP flows in the domestic institutions, says Neelotpal Sahai, Head of Equities and Fund Manager at HSBC Global Asset Management.

Speaking to CNBC-TV18, Sahai noted that volatility is part of the equity markets. "However, if we look at the reasons for the rally, we can say that for the longer term it is the corporate earnings and macro which is important but from medium to short term it is actually the liquidity. On the liquidity front, both FII flows as well as domestic flows have been pretty strong. In fact, 2019 was the second-best year in the last decade if you look at a combined inflow of over $20 billion," he pointed out.

In the infrastructure sector, he said the revival would come through the government capex. "When we think about the infrastructure capex, last year being the election year, there was a slowdown in the government capex. This year is likely to be better from the government capex and the ordering perspective," he added.

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