It's Too Early to Call All Clear on India Midcaps, Top Fund Says

Even as investors bet on a resurgence for medium-sized Indian companies after Prime Minister Narendra Modi’s return to power, one of the country’s top mid-cap fund manager advises caution, Bloomberg News reported. This group of stocks won’t get an immediate lift from Modi’s victory as it isn’t immune to the slowdown in the economy and the lingering shadow-bank crisis, said Vinit Sambre, who oversees $1.6 billion in two mid- and small-cap funds at DSP Investment Managers in Mumbai. “Corporate India is feeling the pressure of slowdown across the board, and we have not steered out of the non-bank finance crisis that began in September,” he said. “The overall market volatility will have some bearing on mid-cap stocks as well.” Read more