Hang in there in IT; market likely to consolidate till new year: Sunil Subramaniam

economictimes.indiatimes.com:

Sunil Subramaniam, MD & CEO, Sundaram Mutual, says “this week, we will see a consolidation because as it gets closer to Christmas, fund managers go on holidays and so there will be less activity but also the remaining profit booking that needs to be done, would be done. I would say that till the new year, I would expect this to consolidate but in January, I expect further inflows to come in from FIIs and take the index to new highs.”

The markets are in a holiday mood right now. What has been your observation so far? It has been a very good run. The macro cues are also pretty positive. How much is already getting into the price now?
Sunil Subramaniam: I would say that it is not fully into the price and the reason I say that is because this is the period when you have hedge funds booking profits, those who entered six months, a year, year-and-a-half ago, the Indian market has been one of those where they have made the best returns. As you know, hedge fund managers need to book profits before the year end in order to be able to receive their bonuses, so at this time we have suddenly got this flood of good news for India.

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The election result gives us policy continuity, oil prices are stable and a rate cut scenario in the US right up to 2026. So, everything looks good and almost Rs 60,000 crore has come in post the election result. This would be a gross of maybe 70 or 80 because there would be profit booking. So, this week, we will see a consolidation because as it gets