Subramaniam plans to focus more on domestic-oriented sectors as he believes that India will be an attractive market
The Indian investor is becoming mature and more confident as he is figuring out that India continues to perform well, even in a recessionary scenario globally, said Sunil Subramaniam, managing director (MD) & CEO of Sundaram Mutual Fund.
“Indian investor is getting a little more mature; he’s figuring out that in a world which is in recession, India still doing well. So we (should) focus on the India specific areas, which is mid cap & small cap business cycles,” he said in an interview with CNBC-TV18.
On Monday, JP Morgan Chase’s Jamie Dimon said ‘serious’ headwinds are likely to push the US and global economies into recession by the middle of next year.
“These are very, very serious things which I think are likely to push the US and the world — I mean, Europe is already in recession — and they’re likely to put the US in some kind of recession six to nine months from now,” Dimon said in an interview with CNBC.
Talking about the Indian markets, Subramaniam said that with interest rates being hiked globally, investors will focus more towards debt allocation in their portfolios. Moreover, there’ll be a shift of capital out from commodity exporting countries due to commodity deflation, which is likely to benefit India.
“So there will be a reallocation of capital, where I expect India will be the beneficiary number one and commodity deflation will positively impact our economy,” he explained.
Analysts are of the view that India’s fundamentals have been better than most major economies, which has led the Indian market to outperform compared to its global peers.
Subramaniam also said he plans to focus more on domestic-oriented sectors as he believes that India will be an attractive market.
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