According to Pratik Gupta, CEO and Co-Head- Institutional Equities at Kotak Securities, Indian equity market is not cheap but the downside is somewhat protected given the upside risks from some of the current events. The long-term outlook still looks very good, he said.
He believes if one takes a longer-term view of 12-24 months, then the traditional sectors like banks, insurance companies look attractive. He continues to like real estate and capital goods companies. He would use the current market correction to go overweight in these sectors.
Long-term view on pharmaceutical sector is still very positive, however over the next one-two quarters one has to be careful given the valuations, he said.
The broader point to keep in mind is the Fed rate cycle. That is the more structural, more durable risk for the equity markets worldwide as well as for India, he said.
He expects to see more rate hikes, liquidity tightening and in turn putting pressure on growth markets like India.
For the full interview, watch the accompanying video
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