Tag: Sunil Subramaniam

Positive on capital goods, consumer discretionary & building materials: Sundaram MF’s Sunil Subramaniam

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Discussing fundamentals of the market, Sunil Subramaniam, MD & CEO of Sundaram Mutual Fund stated that he would significantly increase exposures in economy sensitive stocks.

In an interview with CNBC-TV-18, he stated that India is likely to take about nine months to come back and is the fastest-growing economies in the world.

“I believe that the budget was not just about action, it was about direction. The reforms planned the PLI announcements clearly indicate and South Korea is the only country which is going to get back to pre-COVID absolute GDP levels faster than India,” he pointed out.

On opportunities in market Subramaniam said, “So capital goods supply, building materials – cements, steel, paints, and the likes and those would be the bets because those order books are not yet showing so buying before that – if you do a lot of research to see who is likely to back those orders because when the news comes the price jumps. So we have to catch it before the news.”

He further added that consumer discretionary looks good for a shorter time frame.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Budget 2021: Expect a heavily infrastructure driven budget, says Sundaram MF

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The union budget is around the corner and Sunil Subramaniam, MD and CEO of Sundaram Mutual Fund, believes that the Finance Minister Nirmala Sitharaman is likely to present an infrastructure friendly one this time on February 1.

According to him, infrastructure is going to get a visibility push from the government.

“The reason is I expect this budget to be a heavily infrastructure driven budget because the government has the leeway this year unlike the previous years and the whole world is in a fiscal deficit situation,” he explained.

Further, he expects consumer discretionary and property prices to stabilise. “Interest rates have come down, there is a lot of supply in the real estate,” he reasoned.

“This summer is going to be a blowout summer because data will be compared on a year-on-year (YoY) basis to last summer. The rural harvest has been good, there is money in people’s hands, so numbers are going to look good,” he said.

For the entire conversation, watch the video

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Redemptions in equity funds flat MoM but inflows are up, says Subramaniam of Sundaram Mutual Fund

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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With the coronavirus outbreak spreading across the globe, there is impact seen on various equity markets and other asset classed. Sunil Subramaniam, MD & CEO of Sundaram Mutual Fund talking about its impact on MF industry, said at the retail levels customers are not worried about equity market volatility.

Speaking about the month of March, he said, “The flows have continued to remain strong in the first week of March. In fact, when there was a severe correction last week, the flows were positive in terms of gross inflows. I am surprised to see the resilience at this point of time of the retail investor. So you can say that the investor has matured or the fact that domestic investors are still looking at it from a positive view in the market and the view continues for this month.”

The redemptions in equity funds are flat month on month but inflows have gone up, he said, adding that debt funds continued to be challenged especially with AT-1 write-offs.

“Retail investors over the last few months have been more worried about debt than about equity and that’s reflecting in their thought process,” added Subramaniam.

When asked about ETF inflows, he said, “Provident funds are allocating money into ETFs and that’s largely institutional money flow which has gone into the ETFs. Provident funds are permitted to put 5-10 percent into equities but they take a call based on valuation.”

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Here’s why investors prefer to look at stories where growth is little but certain, says Sundaram Mutual Fund

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Investors around the world are not looking at price points but at certainty of growth and investing in those stories. Sunil Subramaniam, Managing Director and CEO at Sundaram Mutual Fund agreeing to this said it is a liquidity driven view and that liquidity is the ETF liquidity which comes in and which has no favours, it is just there to buy all the stocks in the Index.

Second, he said is the foreigners. FII flows are still dominating in relative terms. FII flows are 90 percent into largecap stocks and within that they tend to buy comfort because when they see a company abroad and when that same company is trading here they buy it because of the quality of management and comfort level, he added.

The third things, which is the polarisation cost is the fact that in the overall lending space good quality private sector banks and NBFCs are dominating 95 percent of the lending that is taking place in the market and hence poor quality NBFCs and public sector banks aren’t anywhere in the lending picture. “So, the visibility of earnings is saying, I do not care about the price but I won’t my earnings growth to happen,” said Subramaniam in an interview with CNBC-TV18.

When asked if the bets therefore should be only on very good quality names and not decent companies with good prospects, he said, “Giving an example that if I have a company which is good company so it can give me 5 percent growth rate in earnings and can give me 20, and I also have another company which is a very good company but there is certainty of giving me 8 percent growth rate then I would buy that 8 percent over that variability between 5 and 20. That is a key challenge which fund managers have to face with that even if there is a little growth, there is reliability.”

“The standard deviation of the earnings per share (EPS) of a company should be less for me to buy and that is the mantra in the market,” he said.

Talking about mutual fund growth he said, “In terms of flows we are actually seeing almost 15-20 percent spike and we see that it is driven by the fact that over the last six months mid and smallcaps – the indices have delivered about 20 percent returns so a lot of customers’ confidence in terms of putting money to mid and smallcaps is reflecting and those flows have shot up. Also the multicap category flows have also picked up.”

“In terms of re-categorisation,  unlike the earlier time of re-categorisation this time the re-categorisation is going to help the market and the industry because it is going to set right some uncertainties with the previous one, which will be helpful to the stock market as a whole,” he added.

“We are talking about giving greater flexibility. I think the best thing for SEBI to do just as they have large and midcap they should introduce a new category called mid and smallcap and all your erstwhile smallcap funds would probably then choose to be in the mid and smallcap so they can also then take part of the flexibility provided,” he further said.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Sundaram MF bets on private lenders, expects Nifty at 13,500 in a year

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The NSE Nifty will give 12 to 15 percent returns from current levels and rise to 13,500 levels by December 2020, according to Sunil Subramaniam, managing director, Sundaram Mutual Fund.

In an interview with CNBC-TV18, Subramaniam talked on various issues that impacted the Indian markets in 2019 and gave his outlook for the upcoming calendar year.

2020 Outlook

Among sectors, his long term view is that private sector banks are a good bet going forward.

“There is no competition for private sector banks either from NBFCs or PSU Banks. Lending in the economy will be dominated by private banks. Corporate oriented banks are now building retail books rapidly. Margins, as well as the market share of good quality private banks, will go up,” he said.

Subramaniam elaborated why he expects no major improvement in NBFC space going ahead. However, the silver lining, according to him, is that the retail-oriented NBFCs should fare better.

“Mutual funds have drastically reduced their lending to NBFCs. Many NBFCs have lent to the commercial vehicle segment which is already facing a cyclical downturn. Thus, such NBFCs will continue to face NPA problems,” Subramaniam said.

Subramaniam noted that the auto sector is showing green shoots of recovery as there is hope for demand revival, “Valuations have corrected very sharply and now look attractive. The worst is behind for the auto sector but the recovery will be U-shaped.”

Looking at current valuations, Subramaniam believes that this is a good time to buy good quality stocks. Taking on the foreign inflows into Indian equities, he noted that India is a very attractive destination in a low-oil price scenario. Further, foreign inflows were high on hopes that the government will liberalize FII norms.

“There is more room for dilution of PSUs and many foreign investors are interested in good quality PSUs,” he added.

On broader markets, he expects midcap stocks will outperform large caps in the coming 18-24 months as FIIs are shifting their focus towards midcaps. He also expects that diversified fund managers will allocate more to mid and small caps.

Subramaniam also expects consumer discretionary stocks to perform well as India’s consumption story will continue to play in the long term.

On the global front, Subramaniam said that there is a huge opportunity for India amid the global chaos. India can benefit from events such as Brexit and US-China trade war.

The Year Gone By

Speaking on the key events of this year, Subramaniam said the corporate tax rate cut had the most significant long term impact on the markets.

“Tax cut for new manufacturing companies to 17 percent will not only give impetus to domestic companies but also attract foreign companies to set up their shops and factories in India. India faces a huge challenge of job creation and the manufacturing sector is the one that has the potential to generate employment for a larger population. Markets also celebrated the fact that Indian companies will show better EPS and more FDI will be attracted,” he said.

When asked about the market performance despite weak economic conditions, Subramaniam believed that the markets have risen due to the availability of ample liquidity.

“The foreign inflows this year has been around Rs 90,000 crore, while domestic mutual fund inflows into equity markets have been close to Rs 55,000 crore. Moreover, markets looking at downturn as cyclical and temporary,” he added.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Monthly SIP inflow may touch Rs 9,000 crore soon, says Sundaram MF’s Sunil Subramaniam

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Indian investors are clearly not spending now and the consumer surplus that they are having is going into savings, mainly bank deposits, Sundaram Mutual Fund MD and CEO Sunil Subramaniam said.

Speaking about the drop in flows into equity mutual funds, Subramaniam said, “If you desegregate the net sales number, and look at the gross sales separate from the redemptions, I think there has been a 5 percent drop in the gross inflows. However, there has been a 20 percent spike in the redemptions. So, what has led to the drop is redemptions.”

However, Subramaniam expects flows to return in the next few months. “The flows are a function of the overall flows into the financial services space. So, investor clearly is not spending today. The consumer surplus that investors are having is not going into spending, it is going into savings. Where is it going in savings? I think it is going into bank deposits because compared to inflation there is a huge real rate benefit. So, the main reason for this is that the money is going into the bank deposits,” he pointed out.

Over the next few months, as rate transmission happens on the lending side, the deposit rates are expected to get cut. “With the tax savings season also commencing from this month, I think you will see a healthy flow back into equities from now until March,” he added.

While new SIP flows have been coming in, the net number is hanging around Rs 8,000-8,200 crore. “However, I would expect this number to touch Rs 9,000 crore before the end of the financial year. So, I see this as a very temporary trend in terms of the numbers remaining stagnant. I think in the coming months you would see this trending up and I would say touching Rs 9,000 crore before March as a monthly inflow number, I would expect that to happen sooner,” he added.

Disclaimer: The views and investment tips expressed by investment experts on CNBCTV18.com are their own and not that of the website or its management. CNBCTV18.com advises users to check with certified experts before taking any investment decisions.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Expect growth revival in first quarter of next year, says Sundaram MF’s Sunil Subramaniam

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Sunil Subramaniam, MD & CEO of Sundaram Mutual Fund, shared his views on the fundamentals of the market and spoke about specific stocks and sectors.

Speaking about autos and auto ancillaries, Subramaniam said, “It is a wait & watch for auto names during the festive season. “Until the end-user automobiles show a growth, ancillaries are not going to get the order book going. So, at this point in time, we got to see how the festival season pans out.”

“While we expect heavy discounting to kind of boost the top line sales of auto companies, that is not good for auto companies’ bottom line. However, it would be good for auto ancillary companies because on the top line of that company their order books will go up. So we will keenly watch the numbers in the festival season for that,” Subramaniam said on Wednesday.

“The government’s room this year is still limited because one, they have taken on this fiscal deficit as a burden. Second is the fact that they have already borrowed most of the money, they do not have much room. However, February 1 is a new budget and it is a new year. What we are observing is that in the next budget we do expect a lot more room for government spending to kickstart. So, budget from February onwards, we think that government spending will start driving and even for the commercial vehicles, auto, everywhere, it is government spending which is going to create a boost,” he said.

“Our sense, first quarter of next year should see some beginning of a revival driven by government spending,” he added.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Sundaram MF: Investors confident equities will deliver in the long-term despite slowdown

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Mutual Fund (MF) inflows in August have risen by more than 12 percent. While the inflows into large and small cap funds have seen healthy growth, midcap funds have seen a contraction. Sunil Subramaniam, managing director and CEO, Sundaram Mutual Fund in an interview with CNBC-TV18 talked about market outlook.

“While some long-term midcap and smallcap systematic investment plans (SIPs) have turned negative and there is this feeling that economic slowdown is on the anvil, I think from an asset allocation perspective, investors are still reasonably confident that equities will deliver over the long-term,” Subramaniam said.

“Existing investors who have already invested are experiencing the pain of the stock market and are not reacting negatively to it,” he added.

Sundaram said that even the alternative sources of investment are losing attraction.

“Every day there is news about banks cutting interest rates, not just on lending but on deposit rates too. So the alternative sources of investments are also becoming less attractive. So equities as an asset class, people are now beginning to realise that it is steady, consistent and the SIP flows bear that out,” said Subramaniam.

He added: “There are institutional investors, there are high net worth individuals (HNIs) and there are retail investors. Reasonably bad experiences they have had with the credit funds and with exposures to names like Zee, DHFL and the likes, retail investors have got a little bit wary of this segment.

“HNIs are also still being wary of credit funds. However, they believe that with the slowdown in the economy and interest rates trending down, there is some money to be made in terms of duration play. Institutional investors are at the short-term end of the market and with the new regulations around the money market, they are shifting to arbitrage.”

Subramaniam said that arbitrage funds are seeing good institutional inflows.

“On the equity side, arbitrage funds have seen big inflows over the last few months. That is institutional money, which is playing the taxation game,” said Subramaniam.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow