Single-stock ideas spurting; bodes well for mid-caps: UBS

The domestic market has been trading range-bound over the past month. Suresh Mahadevan of UBS tells CNBC-TV18 that it is likely to continue this way until the fourth quarter. However, positive news in the form of policy reform or the RBI signaling inflation control could take it higher, he says. According to him, policy inaction is what has been worrying the market, "but most of the negative news has already been priced in," he says.

He sees no trouble on the liquidity front with good FII inflow and says that investors are still confident of the India growth story. "Investors are open to single-stock ideas and this benefits certain good quality companies in the mid-cap space," he says.

Getting sector specific, he says that FMCG is a good defensive play in the volatile market. UBS has reiterated their