The outcome of state elections is very important from a market perspective, but not so much fundamentally from an economic perspective, says Sunil Subramaniam, CEO, Sundaram Mutual Fund.
He is confident that events post-March 11 will give good buying opportunities in the market but one needs to have cash-in-hand to make use of those. Therefore, it is necessary to book profits in portfolios that have already given good returns and try to reallocate those funds into these opportunities, says Subramaniam in an interview to CNBC-TV18.
According to him, the fund house would prefer to have cash ready to deploy when the market reacts to an event.
“We have made consistently good money over the past whenever we have capitalised on events – be it Brexit, Trump election, demonetisation etc,” adding that all of those have proved to be wonderful opportunities for the MF industry.
Moreover, it is also a good time to reward investors through dividends by booking some profits, he adds.
One can look at metals, energy and PSU banking space from a three-year perspective. There is still potential for a valuation upside in them, he says.
Rural, infrastructure and banking are also key themes to look out for, says Subramaniam.
For the entire discussion, watch video