ICICI Prudential AMC said they are not making an aggressive market call at this point in time because of rise in crude price.
Globally, interest rates have gone up and there are reasons for volatility in India over the next 12-18 months, said S Naren, ED & CIO, ICICI Prudential AMC.
"We believe in moderate returns and not high returns," said Naren.
However, the house is upbeat on earnings and are positive on largecaps over midcaps and smallcaps over the next few years, he said.
Sharing the rationale for pharma, healthcare and diagnostic (PHD) fund, he said with increased prosperity in the economy everyone is positive on consumption and the same mega trend is also applicable for PHD.
Moreover, since the PHD space has been a dog of a sector over the last three years, it could be a big mega trend over the long term. The space is giving a good entry point and the valuations are also attractive, he said.
ICICI is also upbeat on the telecom space. The demand is going up due to increase in consumption and the house is positive on it over the next four to five years.
However, near-term the sector could see competition oriented problems, added Naren.