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London Eye: Risk reward not favourable for India in the short term, says Prashant Kothari

Updated : May 29, 2018 10:00 PM IST

In an interview to CNBC-TV18, Prashant Kothari of Pictet Asset Management shared his views on Indian economy and equity markets.

Speaking on markets he said, "The recent scare was mostly because of the macro issues and also bit of the politics where BJP kind of lost some by-elections and then there was scare that maybe Narendra Modi is not really coming back next year and then we had the bond yields going up which led to a market correction."

"Surprisingly the bond yields went down but have come back up again. Rupee has actually depreciated and you are seeing foreign exchange outflows happening now, he added."

Speaking about the political situation, he said, "I don't think anything has changed in terms of the certainty or the uncertainty of it but the markets have really come back up. So, very short term view would be that the risk reward is not really in our favour, so we would rather be cautious, we would rather be defensive in our portfolios today."
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