Don't sell; bullish on select midcaps: Capitalmind.in

A: Bihar has become like a self-fulfilling prophecy. It matters because people care about it and suddenly people care about it because it matters. So, I believe that people are looking at it as a signal; even foreign investors are wondering whether if Bihar were to not fall in the lines of let us say BJP victory, will the central government’s policies change towards reforms or anything else. I believe it should not but the popular belief is that they might have to change that stance. We have seen a little bit of foreign investor exits and they have gone a lot short in the derivative markets in the recent times.

We believe that this is a short-term negative for the markets until this whole Bihar thing comes out. So, honestly, to be fair, results have not been very exciting. Of the 35 companies in the Nifty that have announced so far, we have seen a consolidated profit growth, aggregated, of only less than 5 percent and the worst results are yet to come.

So, in that way, I do not believe that we are on a fantastic front from the fundamental side and technically also we are looking fairly week.

Latha: What is your strategy at this point in time? Are you selling some of your older investments or are you just avoiding buying?

A: We have two things. We run without price targets and we have stop losses. So a lot of our stop losses have been triggered in recent times especially after results. But we are positive on certain industries in certain midcaps as well. We have a few investments in the consumer entertainment space but we also have a few portfolio strategies around specific midcaps that seem to have done well or seem to have a bright future ahead. We are not specifically telling people to sell their portfolios but we say maintain a stop loss. You cannot predict the market at this point.For entire interview, watch accompanying video.