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Are HNI’s finding value in mid and small-cap stocks?

A high net-worth individual himself, Sandeep Madan says the overall market will only rise higher if all the policies come true and it all depends on how things that are being spoken about (‘Make in India’, etc.), play out on the ground.

The market has already factored in major cues, says Sandeep Madan. He says the market has moved more than 25 percent on the Modi wave, but for it to move beyond current levels, market participants will wait and watch for prime minister Narendra Modi to walk the talk on the reforms agenda.

BSE small cap index is up almost 63 percent year-to-date and BSE mid-cap is up almost 42 percent.

A high net-worth individual (HNI) himself, Madan says the overall market will only rise higher if all the policies come true and it all depends on how things that are being spoken about (‘Make in India’, etc.), play out on the ground. It will be true for across the market, he adds.

“The general market will only go up now if we see that all the policies, all the good talk of this “Make in India”, what our Prime Minister has been talking about, how well does this play out on the ground when people do ask for the situation to change, where manufacturing has to become easier is that are the authorities, are the bureaucrats, is the country as a whole going to be welcoming that or it is going to be more of a situation which we have been hearing where it is more of a talk less of the walk,” Madan told CNBC-TV18.

The way the markets are today, the index is at a PE of around 17 which is higher than the average that the PE trades, he adds.

According to him, the beaten down infrastructure companies will be good play if policies do play out, agendas such as clean Ganga, roads, etc., see light of the day.

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