Harsha Upadhyaya, CIO-Equity at Kotak Mutual Fund, spoke to CNBC-TV18 about the current macro-economic situation and developments in the oil market.
"We are in a clear favourable macro trends environment with many of the issues having got resolved. The trend in crude oil is also favourable despite announcement of production cut by OPEC and it has not moved beyond USD 60-61 per barrel, which is positive for the Indian economy and also to corporate profitability with a lag," Upadhyaya said on Friday.
With regards to the next week's US Federal Reserve policy, Upadhyaya said, "There is also expectation of US Fed going slow with interest rate hikes next year and if that were to happen then it would be positive for all emerging markets (EMs) including India. So, these are some of the positive trends for the Indian economy but the political uncertainty continues till general elections and so market are like to stay volatile."
“For us, early part of 2019 would still be a consolidation phase for the market and if you get good opportunities to invest during that period and if a stable government comes in then you could be in for good amount of wealth creation,” said Upadhyaya.
The house is bullish on domestic cyclicals that are closely linked to the economic activity and on sectors that are linked to rural economy.
"Within the consumption basket, rural spaces like tractors, two-wheelers and stocks linked to agricultural improvement look good going forward," he said.
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