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Be extremely cautious while investing in financials this year, says Udayan Mukherjee

Updated : May 13, 2019 12:43 PM IST

Market expert Udayan Mukherjee on Monday asked investors to be cautious while investing in financials and fixed income this year as he worried about the kind of scars investors will come out with because of all the corporate episodes which are floating around.

“You have to be very careful what you are picking," Mukherjee said.

"If you are investing in financials at this point in time, which is what a lot of people have 50 percent of their portfolio in, the addressable universe or the investible universe for financials for this year has shrunk to probably no more than 6-8 stocks -- HDFC Bank, ICICI Bank, Kotak Mahindra Bank, Axis Bank, SBI, Bajaj Finance is the bluechip list. If you want to scratch a little lower, get into a couple of the Shriram stocks. That aside everything else is up in the air in the financial space,” he said.

It’s good that the market corrected before the election results, Mukherjee said. “The market was ripe for a correction. The timing was uncertain whether the market would rally till the result and then we would see a fairly deep correction or the correction would happen before the results and in a sense, it has made the market lighter and priced in some degree of uncertainty in the result as well,” he added.
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