Moneycontrol
Apr 07, 2017 01:41 PM IST | Source: CNBC-TV18

See Sensex at 40K in 3-yrs; consumption, infra to drive mkt higher: Sundaram MF

Today being Mutual Fund day (seventh of every month is celebrated as MF day) and to celebrate this day CNBC-TV18 to celebrate this day spoke to Sunil Subramaniam, CEO, Sundaram Mutual Fund for an outlook going forward.

The fund has a hefty target for Sensex in the next three years at 40,000. He said the first leg of the market cycle will be driven by consumption, and then 12-18 months from now, the infrastructure segment will come to support. So for 3-5 years, we are in a bullish trend for growths.

According to him, from the time Narendra Modi came to power, the investor inflows into Indian equity markets have been over Rs 2 lakh crore. So, in the last 3- year’s flows have doubled to the flows seen in last one decade before May 2014.

This shows us that the confidence of an Indian investor towards the economic growth of the ruling government, he said

The domestic flows into mutual funds have been steady throughout the year but if one is looking at the delta in terms of rise in valuations of India then it could be the FII flows, which have volatile throughout the year, said Subramaniam.

To know his rationale behind a hefty Sensex target, watch video

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