Sridhar Sivaram, investment director of Enam Holdings, is of the view that Indian equity markets are significantly underperforming the emerging markets.
“EMs have had a great start and are already up 10 percent in dollar terms, while our markets are flat,” Sivaram told CNBC-TV18 on Tuesday.
"It is a bipolar market where only few stocks have done well. The texture of the market is not good," he added.
According to Sivaram, the biggest risk to the market could be the financial sector, which is NBFC, HFC related. “This entire basket because of promoter lending, lending to HFCs, NBFCs aggressively can lead to some kind of crisis because they are no longer small".
Sivaram said the risk reward is better for the two-wheelers now although there could be more pain for them. "However, the house is a long-term investors and expect growth in the mid-teens to return for them over a period of time," he added.
Corporate banks is another space where they are upbeat on although the space has become crowded now. "There is still room for re-rating in corporate banks", Sivaram said.