Suresh Soni is betting on capex, credit & consumer stocks. Here’s why

economictimes.indiatimes.com:

Suresh Soni, CEO, Baroda BNP Paribas MF, says “in the last three-four months, there have seen about Rs 125,000-150,000 crore of foreign flows, which is more than the entire outflow from FIIs last year. As the Indian growth story remains strong, we believe that foreigners who are relatively under-owned in India might invest more money. Domestic flows have remained strong.

The investors have been putting money month after month in SIPs. I continue to see that trend.”Given that we are at the fag-end of the earnings season, we have had the Fitch downgrade as well that came in for US equities. What could be the next trigger point for the markets?The markets have been on a good wicket because India's macro story has remained fairly strong, both on the stability as well as growth dimensions.

Our fiscal deficit situation has improved because of GST collections. Forex situation is fairly strong and inflation has remained under control. At the same time, if you look at the impulse for growth, whether it is our GST collection, PMI numbers or the growth so far in the earnings reported by the companies, all of that has been on a fairly strong wicket.

So that has given a strong background to the market and based on that, the overall macroeconomic outlook looks fairly strong. The equity markets are also drawing comfort from that.What is the outlook when it comes to the entire financial space? Do you believe that the compounding story when it comes to largecap banking names will remain intact?Banking is a space that we really like. The country is witnessing a fairly strong credit growth after a long period of time.

Credit growth is around 15% which is the highest in the last decade. Bank balance sheets are clean. Over a period of time,