Commenting on the government’s move to hike the minimum support price, he said the move will help sectors related to rural consumption
Mid and smallcap stocks have corrected in double-digits after a straight rally seen in the past 3-4 years. Going forward, Sailesh Bhan, Deputy CIO, Reliance Mutual Fund, feels a bounceback in earnings growth will dictate the trend seen in the broader market.
The midcap sector, which has done very well in the last 3-4 years, is now witnessing some decline. The big carnage was seen in the BSE Smallcap index, which plunged 17 percent, and the BSE Midcap index, which dropped a little over 13 percent in the same period. Ironically, this correction is happening at a point in time where the underlying micro conditions are much favourable, Bhan told CNBC-TV18.
Commenting on the government’s move to hike the minimum support price, he said the move will help sectors like consumption or sectors related to rural consumption. “Hike in MSP will help support rural demand.”