Market subdued due to political uncertainty: Pramerica MF

In a chat with ET Now, Vijai Mantri, MD & CEO, Pramerica MF, shares his views on the market scenario in 2014. Excerpt:
ET Now: The euphoria from 2013 has not rolled over to 2014. What are your views?

Vijai Mantri: One of the most important reason which is impacting market is the election results. People are not sure who is going to form the government.

You have IT, pharmaceutical company and FMCG companies available at historical and high PE multiple.

There are many industries whose fortunes are directly or indirectly linked to the policy clearances. These companies are available at their historical valuation.

Hence, the market uptick which we have seen in 2013 and 2012 was largely driven by these FMCG, IT and that kind of stocks.

Therefore, until and unless that clarity comes, the market will not go immediately into big bull phase. However, we are seeing the range in which market is inching upward -- earlier it was 5,200 to 5,700; then 5,500 to 6,000. And now, we are talking about 6,000 to 6,500 level.