Andrew Holland, Avendus Capital Alternate Strategies said he would be a bit skeptical about the current market rally and would wait for a correction if it is coming.
Indian equity indexes, the BSE Sensex and the NSE Nifty 50, opened at a record high, tracking positive global cues. The Nifty 50 started above 11,500, while the Sensex crossed earlier record level of 38,076.
IT sector is in a transition and may not go back to heady growth days but the house is constructive on the space, Holland said.
On consumption pace, Holland said that there is still opportunity because that story for India will continue for a long time. "Maybe there will periods where parts of the industry may not do well in the short-term but over the long-term consumption story is something that one has to play," said Holland.
On the turmoil in the currency markets, Holland said it could impact the equity markets at some point although it is not happening at the moment.
If trade war takes place, then India would stand out as a domestic-driven economy and could be a relative outperformer although it might take hit on the currency, he said.
However, if trade war does not happen and we go back to global growth and interest rates rise globally, then it will impact emerging markets, and India, said Holland.
Possibly the rupee has done its course in the short-term and the only pressure would be if the China-US trade talks fail, he said, adding that would put further pressure on emerging market currencies including India,” he said.