Since October 2019, we have been bullish on mid & small-cap segments and still, we are extremely bullish on the same with a 3-5 years view. In March 2020, we had given a thumping the table buy call on equities. Umpteen number of conference calls we did during that period to convince our partners to invest aggressively into our equity funds on the lumpsum basis and also, we wrote in the CEO Commentary of our factsheets during March/April and May 2020) which has done well by now.
The life after COVID-19 is quite different from that of the past. World over governments and companies are aiming to de-risk their supply chains, improve the infrastructure, healthcare and also have started focusing on creating more self-defence for themselves.
US money supply growth is unprecedented this year to the tune of 24.4%. Normally this number used to be 5-11%. Because of the massive liquidity boom we see the probability of FII flows to be strong in the coming 12-18 months as well. So liquidity will decide the market up-move in the near to medium term but we see strong earnings rebound also to happen in the same period, which can lead to higher market valuation.