Sunil Subramaniam , Market Expert, says the SIP book is around Rs 25,000 crore, with domestic investments focused on mid and small-cap stocks, while foreign institutional investors (FIIs) target large and mid-cap stocks. This suggests a consolidating market, as fund managers may invest in lower-cap stocks while FIIs divest from higher-cap ones, potentially leading to corrections in large-cap stocks. Fund managers might sell well-performing small-caps for promising large-cap opportunities. Expect a consolidation phase for another month, so patience is essential. As a bullish investor, Subramaniam sees this as a good time to prioritize quality over momentum and value, continuing to acquire high-quality stocks during dips, with significant allocations expected around mid-January.
For a bull like you, there are concerns which you need to be cognizant of. Soaps and shampoos are not selling. GDP is below 7%. Government capex is low and FIIs are selling.
Sunil Subramaniam: Well, you got to look at it as how much of it is short-term and how much of it is sustainable. I do not think any of them is a sustainable thing.
First of all, let us talk about soaps and shampoos. What are the forces at play here? There are two things. One is that while India’s per capita GDP has expanded to 2,800 levels, you are seeing that in the K-shape which is true of the consumption also because the rich are getting richer and the poor are remaining where they are. So, a very polarised economic growth is happening, that is number one. The bottom of the pyramid incomes are not growing at the same pace as the one at the top.
The second aspect is inflation. For some reason, despite a good monsoon, food prices are very high. It is a little bit
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