UR Bhat, director at Dalton Capital Advisors, spoke to CNBC-TV18 about the global market selloff and its impact on Indian equities.
"Domestic events like general elections and international issues like escalation of tariff wards, Brexit concerns in Europe, sanctions etc may impact flows into emerging markets," Bhat said.
According to him, the global market sell-off may not be done yet because of continuation of tariff war, issues with respect to the shutdown of the US government still an overhang.
"So, in this kind of environment, capital preservation is the way to go," said Bhat, adding that one can look at hiding in money market and if one has to be in equities then should likely be in domestic demand play like FMCG, private sector banks and industrials.
“You need to be in cash quite substantially if one has to negotiate this period of volatility that we see ahead,” he said.
According to Bhat, "A retail investor is the last man who should be timing the market. He should continue with his SIP investments but if HNIs or institutional investors are looking for short-term investments then they should better wait it out. However, for long-term investors every correction should be an opportunity to buy and create portfolio of good stocks."
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