Too early to bet on resurgence of midcaps, warns DSP MF's Vinit Sambre

The midcap gauge Friday halted two weeks of gains as data on May 31 showed the economy grew last quarter at a slower pace than economists expected

Even as investors bet on a resurgence for medium-sized Indian companies after Prime Minister Narendra Modi’s return to power, one of the country’s top mid-cap fund manager advises caution.

This group of stocks won’t get an immediate lift from Modi’s victory as it isn’t immune to the slowdown in the economy and the lingering shadow-bank crisis, said Vinit Sambre, who oversees $1.6 billion in two mid- and small-cap funds at DSP Investment Managers in Mumbai.

“Corporate India is feeling the pressure of slowdown across the board, and we have not steered out of the non-bank finance crisis that began in September,” he