Harsha Upadhyaya, chief investment officer-equity at Kotak Mutual Fund, is cautious on the Indian equity market because he feels there hasn’t really been any improvement in some of the macro challenges that the economy faces.
"So one cannot rule out further correction in the market and what we are witnessing now is just a pullback," said Upadhyaya.
“Equity markets never move linearly and whenever they do there is some amount of risk on the other side,” he said in an interview with CNBC-TV18 on Wednesday.
Upadhyaya said that as a fund house they have been trying to look at some opportunity in the mid and smallcap space and although one cannot rule out further correction in the spaces, they have already corrected significantly.
"Moreover, if the correction continues one could find more value in the mid and small caps. From next couple of quarters perspective that is the segment we would look for more opportunities,” he said.
Talking about the market returns, he said “Whatever returns we will be able achieve will be dependent on how the market does over the next few years and clearly in short-term we cannot expect anything but moderate returns from equity.”
"However, once the macro headwinds start to improve and there is some clarity in terms of political set up post 2019, we will get back into higher valuation zone," he said.
Have you signed up for Primo, our daily newsletter? It has all the stories and data on the market, business, economy and tech that you need to know.
First Published: IST