If seen on weekly basis, there was a decline in the market this week. Sensex fell by 0.19 percent while Nifty saw a decline of 0.44 percent. However, the rise in banking stocks supported Bank Nifty and this week Bank Nifty closed with a strong gain of 1.80 percent. In such a situation, let us know in detail about the further outlook of the market and Baroda BNP Paribas Nifty Midcap 150 Index Fund. Shiv Chanani of Baroda BNP Paribas Mutual Fund in conversation with CNBC-Awaaz Said that there is a situation of ups and downs in the market and domestic consumption is increasing towards revival. Many uncertainties remain at the global level. There will be better opportunities in domestic theme.
He further said that the impact of global challenges will be visible on the entire world. There is concern over military action and geopolitical issues. US elections, China slowdown are short term risks. The Indian market position is strong. He said that focus should be on capital goods, chemical, real estate, and textile sectors.
Giving his opinion regarding FIIs, he said that the size of the market is continuously increasing. FIIs will have to come towards the Indian market. Conditions will become stronger in 7-10 years. There will be better returns in China market after 2-3 years. The last few years were average for the China market. FIIs’ money will come to India through emerging markets. Confidence in the Indian market remains intact.
Which theme is attractive? Answering this question, he said that there are investment opportunities in innovation and consumption sector. We have a bullish view on the energy transmission sector. Keep a perspective of 3-5 years. Big investment is possible in these three themes. There is huge potential in the innovation sector. Technology is needed in every field. There are better opportunities in AI technology. The increasing demand of the consumption sector and energy transmission has emerged as a big theme.
Opinion on banking sector
Valuations have been very cheap in the last 5 years. The sector has been underperforming for the last two years. There have been ups and downs in the sector for the last two years. A comeback of the banking sector is possible in the next 1-2 years. FIIs have a lot of interest in private banks. The situation may improve in the coming time.
Nifty Midcap Index StrategyWhile talking, Shiv Chanani said that there is an effort to give better returns to the investors. It is advisable to invest in the long term. Midcap strategy is for long term. The fund is suitable for new investors also. This fund is suitable for low risk taking investors. You will get the benefit of diversification. Midcap growth should take a view of 3-5 years. Mid and small have given better returns than large. It would be advisable to invest in the long term. Don’t be afraid of short-term fluctuations.
How much return can be expected in the fund? Talking about the returns of the fund, he said that midcap and smallcap give better returns than large caps. India will be the world’s largest growth economy in 5-7 years. Mid and small companies will give good earnings growth. If earnings growth is good then returns will also be good.
What is your opinion on FMCG sector?
In the next 5-7 years, demand for soap, oil will decrease and demand for food, beauty, personal care will increase. Select stocks according to demand.
Big Market Voice: Be alert in the current market, banks, NBFCs, pharma sectors are doing better – Deepan Mehta
