Rural Recovery Will Be The Next Big Trigger: Sunil Subramaniam
Sunil Subramaniam says Nifty is not expensive and feels there is value in midcaps.
Consumption revival in rural India will drive the next leg of growth for Indian companies. That’s the view coming in from Sunil Subramaniam, the chief executive officer of Sundaram Asset Management Company.
Speaking to BloombergQuint, Subramaniam said Nifty is not expensive as the index is trading at 15 times next financial year’s earnings. He does not see a bubble in midcaps either, as he expects 20 percent earnings growth next year.
He adds that the implementation of the Goods and Services Tax will boost foreign direct investments into India’s manufacturing sector.
The Sundaram Asset Management Company CEO added that consumer durables, private banks, non-banking and financial companies and industrials are their top sectoral bets.
Sundaram Mutual Fund is underweight on technology and metals. Subramaniam added that his fund managers are monitoring U.S. economic revival and not China’s for signs of revival in the commodity cycle.