Broader market to catch up as recovery plays out, says Mahesh Patil

We expect the numbers for the December'19 quarter to show early signs of economic growth bottoming out, says Mahesh Patil

Even as the headline indices are expected to deliver modest returns in FY21, fund managers are expecting a pick-up in the broader economy, triggering a recovery in the beaten-down mid-cap segment. Mahesh Patil, co-chief investment officer (equities), Aditya Birla Sun Life Mutual Fund, tells Jash Kriplani about what makes him bullish on growth. Edited excerpts:

Your views on monetary policy and the impact of Operation Twist? 

The monetary policy has been fairly accommodative in 2019 with the Reserve Bank of India (RBI) embarking on a 135-basis point (bps) rate cut, besides keeping liquidity fairly abundant. However, the transmission of policy