'Markets started building on NDA's win since Dec 2023'

It has been a topsy-turvy fortnight for the markets. Small and midcap stocks have been bleeding since the markets regulator Sebi flagged concerns around what it called "pockets of froth in the market".

- MILIND MUCHHALA

 So what should investors do in such a scenario? MILIND MUCHHALA, executive director, Julius Baer India, in an interview with Puneet Wadhwa in New Delhi, said that he remained positive on the small and midcap space. He would look at the current corrective phase as a good time to selectively look at companies where one was convinced about the growth of those businesses. Edited excerpts:

Do you think that the markets are fully discounting the Narendra Modi-led National Democratic Alliance's (NDA) victory in the general elections?

The markets, probably, started building on NDA victory in the Lok Sabha elections post the favourable outcome in a few state elections since December 2023 itself. Hence, the discussions have been more around the number of seats rather than whether the incumbent government will be able to come back in the third term. In fact, the incremental developments in the past couple of months (inauguration of Ram temple in Ayodhya, weakening of the opposition coalition) had further cemented hopes for the same.

What's your expectation in terms of big bang policies by the next government?