In an interview to CNBC-TV18, Rajesh Bhatia, MD, and CIO of ITI Long-Short Equity Fund shared his views on the fundamentals of the market. He also spoke about specific sectors.
Speaking about his sectoral bets, Bhatia said that their sectoral narratives have not changed over the last couple of months. “We still continue to be long private banks, telecommunications, some insurance companies, and some select domestic pharmaceutical companies. So, the narrative of what we are long on has not changed in the last couple of months.”
On the impact of coronavirus, he said, “We have a long-short equity fund and to that extent, our first dharma is really to protect the downside of the portfolio. So, when an event risk takes place like this, what we would do is, we would reduce our equity exposure in those kinds until greater clarity comes.”
Bhatia believes that economic growth will bounce back sharply once the coronavirus issue is sorted out. “The liquidity in the global markets is so high, in fact, it is at a record level, and of course the domestic liquidity also towards equity is extremely high. If this coronavirus issue were to sort out, I think we have headed towards new highs again,” he said.