The best way to play the economic cycle is to buy midcaps as they have the ability to deliver faster earnings growth, said Arvind Sanger, managing partner of Geosphere Capital Management, on Thursday.

Speaking in an interview to CNBC-TV18, he said, “We are strong believers in the economic recovery coming post COVID and India is one of the better positioned and certainly one of the best amongst the large emerging markets to benefit from post COVID recovery and when you are playing an economic cycle, which is going to be multiyear and not just a short-term bounce back from COVID, then midcaps have an ability to deliver faster and longer earnings growth.”

Talking about global markets, Sanger said, “On one hand there is a fear about inflation and rising rates and on the other hand there is now fear about rising COVID cases and slowing down of economies. However, this time, COVID or no COVID, a severe slide back on lockdown is off the table.”

Sanger is optimistic that this is the last storm in relation to COVID. “It’s a race between the new strains and vaccination. We remain optimistic that this is the last storm before we get parting of the clouds and things are looking bright again and by May-June we will see improvement and normalisation in activity,” he said.

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(Edited by : Niral Sharma)