Don't expect capital goods bouncing back: Kenneth Andrade, IDFC Mutual Fund

In a chat with ET Now, Kenneth Andrade, CIO, IDFC Mutual Fund, shares his views on the energy sector. Excerpts:

ET Now: What explains the move in the energy names - BHEL, for instance? Do you think this was just a technical one-off or could this be start of a meaningful upside in the entire sector?

Kenneth Andrade: I do not think India will be in a capex mode for some time. Irrespective of which company we talk about, we are very far away from being into a capex mode and the reason is quite clear - you do not have the policy framework, you have got significant amount of companies with work in progress which have not gone on stream and the financial system does not have capacity to fund anymore.

Therefore, we cannot see capital equipment or capital goods as an entire space bouncing back. The environment just does not support it, not only for this year, it does not support it for some time now.