Axis Mutual Fund on Tuesday said investors have to wait and watch for couple of months before investing in market.
In an interview to CNBC-TV18, Jinesh Gopani, head - equity, said, "Clear metrics is oil and the currency. Both had been on the deteriorating side and that is what you saw in terms of macro imbalances and the fear of macro weakness further. To that extent, if oil reverses and even if the currency stabilises or reverses, I think it's great for the market."
"The domestic side of the sectors which have been hammered because of the fear of macro becoming weak and it's impact on inflation and higher interest rates to that extent, if this both metric reverses, then I think we are in good shape," Gopani said.
He further added, "It's too early to call a bottom, we still have to be cautious over the next 2-3 months. We will have to see how the oil prices really stabilises, whether they stabilise at this level or they further start moving up or they come off to let us say $75 or $70 per barrel. I would recommend to wait for one or two months, let it stabilise at some level and then maybe start investing with a longer term view."
Speaking on financial sector, he said, "Again, we will have to wait on the liquidity side of the financial market. Unfortunately after the IL&FS event, there was a liquidity squeeze along with GST and advance tax outflows. There was too much liquidity crunch in the market and this episode happened. Suddenly, there is no buyer for the NBFC papers."
"Again, I would recommend to wait for one or two months, let the liquidity issue get sorted out. If liquidity issue gets sorted out, then business is as usual. If really things are not getting back to normal on the financial liquidity pace, then we will have to see where to trim and where to add more. As of now, we are not doing anything, we are waiting for the opportune time either to buy or sell and we will wait for one or two months to really see how this liquidity issue gets sorted out," he added.Disclaimer: The views and investment tips expressed by investment experts on CNBCTV18.com are their own and not that of the website or its management. CNBCTV18.com advises users to check with certified experts before taking any investment decisions.