UBS bets on mid-cap growth story : Gautam Chhaochharia, UBS Securities analyst
Updated on: 06 Jun 2016
'India is lot more of a stock pickers market'
With India remains a bright spot in the global economy with GDP growing 7.6 per cent in FY16. Much of India's growth story originate from the fabulous performance of medium size companies as reflected in the mid-cap share prices.
Speaking to Bloomberg TV India, UBS Securities analyst Gautam Chhaochharia elaborate on the mid-cap growth story of Asia's third largest economy. "India is lot more of a stock pickers market. There are very interesting ideas and companies which should attract a lot of investors' interest," he said.
You are having a mid-cap conference. What is the general mood on India at the moment from foreign investors in terms of fund flows?
This conference is more about mid-cap companies. This is not the flagship India conference. This conference is focused on interesting mid-cap ideas for investors. Interests from foreign investors, specifically to this conference, have been elevated compared to the last year. We are seeing reasonable attendance form investors from abroad including some first time visitors to India. In terms of general interest in markets, most global investors still over-weight India. They have trimmed a bit over last year, but still quite heavily over-weight India and their interest remains high on both absolute and relative basis.
Obviously over the last two-three months, the data points have also helped fuel this positive sentiments.
High frequency data and quarterly earnings season – where our stance obviously is to advise investors to not get carried away – some of this may not be as reflective of the underlined trends as the headline numbers suggest.
It is very interesting that you are doing a mid-cap conference. Sectorally what kind of companies are you looking to showcase? Where do you think the investment themes are on the mid-cap side of the Indian market?