Moneycontrol
Last Updated : Oct 11, 2018 01:06 PM IST | Source: CNBC-TV18

Worst over for market, time to pick good quality small and midcaps: Porinju Veliyath

On NBFCS, Veliyath said he would like to ignore them at this point in time.

CNBC TV18 @moneycontrolcom

"The market has already seen extreme panic and pessimism, and the worst is over," said Porinju Veliyath, managing director and portfolio manager, Equity Intelligence India, adding that it is a rare opportunity to pick good quality small and midcap stocks.

"It is reasonable to think that all the macro negatives are already known to the market and we have already seen extreme panic and pessimism," Veliyath told CNBC-TV8.

Especially for the small and midcaps, the correction is overdone and after 12 months, the investment in quality stocks among the mid and small caps will be significantly higher, he added.

All the negative news is already priced-in, so feel bullish on the markets now for stock picking, Veliyath said.

"For the last 15 years, I have been investing in small and midcap stocks in portfolio management services (PMS)," he said. "So, when things go bad, when sharp correction happens, a drawdown in client accounts are sharp but not overly worried about it."

He is also of the view that the Re 1 per litre burden on oil marketing companies was not a prudent move by the government.

When asked about the correction in index stocks and chances of buying them, Veliyath said he doesn't feel the excitement in index stocks and it is still at 24-25 PE (price-to-earnings).

On non-banking financial companies (NBFC), Veliyath said he would like to ignore them at this point in time.

Source: CNBC-TV18
First Published on Oct 11, 2018 12:55 pm
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