Announcements by Finance Minister Nirmala Sitharaman relating to the impoverished section of the country is laudable, Manish Gunwani of Nippon India Mutual Fund said in an interview with CNBC-TV18.
Among a slew of measures, Sitharaman announced Rs 1.7 lakh crore package under Prime Minister Gareeb Kalyan Scheme
The Scheme will be in two silos - one food-related and one for cash transfer - largely under direct benefit transfer (DBT), Sitharman said in a video conference today.
"We have come with a package that will take care of the concerns of people who need immediate help. The package will help poor people from rural and urban areas, workers, widows, divyangs and senior citizens," the FM said.
According to Gunwani, the market will now keep an eye for a potential rate cut by the RBI, or any other stimulus measures.
The Monetary Policy Committee will hold a three-day meeting and the final outcome will be announced by the Reserve Bank of India on April 3.
On investors’ behaviour with respect to SIP or any MF redemption pressure, he said, "The first half of March was pretty strong in terms of domestic inflows in MF, but the second half was a washout due to logistic problems after lockdown."
"But overall investors interest has not been hit too much by the virus, which is a good sign and indicated that investors are looking for an investment with a long term perspective and the virus is a temporary problem," he added.
Gunwani is bullish on the market as he thinks the COVID-19 episode will conclude within the next 3-9 months. "Yes earnings are washout but if we look beyond that the market is very cheap on earnings yield, bond yields etc."
With largest competitive leaders in the industry, it is a very rare to get such kind of opportunity, said Gunwani who hopes Indian investors stay invested having suffered by big lockdown after COVID-19.
Equity benchmarks have so far corrected more than 35 percent from their record highs hit in January this year.Disclaimer: The views and investment tips expressed by investment expert on Moneycontrol.com are his own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.