S Krishna Kumar, chief investment officer at Sundaram Mutual Fund expects market breadth to widen by next quarter.

“Investor should balance their investments into midcap and smallcaps,” Kumar told CNBC-TV18 on Monday.

"Expect Nifty to be broadly range bound plus-minus 300 points for the next six months. However, one would see lot of sector rotation into stocks that have been languishing compared to movers of the index," said Kumar.

On the earnings front, he said the results have been good all across and that one is seeing a wholesome recovery in earnings across the board.

At the current juncture the house will not be changing its positions significantly on NBFCs but could rejig a bit, added Kumar.

With regards to PSU banks, he said the valuations look quite cheap. "In the near-term they have been impacted by corporate loan book and distress therein. They remain a long-term trade, he said, adding that one can expect more reforms for the space," said Kumar.