Liquidity not a big concern for largecap stocks so far: Kunj Bansal

In a chat with ET Now, Kunj Bansal, ED & CIO, Centrum Wealth Management, shares his view on the impact of shrinking liquidity on domestic equities.

ET Now: What happens if DIIs stop buying into domestic equities? What if they decide to pull the plug?

Kunj Bansal: Healthy liquidity is critical to the market's performance. A lot of midcaps have fallen in the last few days due to drying up of liquidity.

One must note that the impact of this reducing liquidity has been felt more on mid and smallcap counters. For largecaps, it is not a major concern so far.

Overall, I must say that liquidity is a critical requirement for any buying as well as selling. Hence, what you are saying actually applies when there are people falling over each other to buy...
ET Now: Are you shopping right now or are you conserving cash?

Kunj Bansal: We are buying. We are regularly buying wherever we have cash or wherever we are getting inflows from our investors.