Not unduly perturbed by corrections being seen in market: Sundaram MF

7th of every month we celebrate Mutual Fund Day here at CNBC-TV18 and in an interview with CNBC-TV18, S Krishna Kumar, CIO-Equity at Sundaram Mutual Fund spoke about his reading of the market and his outlook.

We are not unduly perturbed by this correction that is happening at this point in time, he said.

Things have improved at the ground level. We are seeing the economy get into a growth path, the earnings are quite strong and across the board doing well. We are trying to add into stocks more bottom-up where we see a lot more visibility in terms of growth runway for the next two-three years, he added.

Rather than a top-down approach, it is the bottom-up strategy that is working, said Kumar.

Non-banking financial companies (NBFCs) in segments like consumer finance or commercial vehicle (CV) finance, you will see that NBFCs have free reach and penetration will continue to grow, he further mentioned.

Overall money market rates moving up in the last six months, the cost of funds for the NBFCs is moving up and that is seemingly having an issue in terms of the spreads that these companies can enjoy, he said.

For full interview, watch accompanying video…