The Indian equity market has passed through the point of peak coronavirus fear, according to Taher Badshah, CIO-Equities of Invesco Mutual Fund. He says that a situation of immense fear and panic selling is unlikely now.
"I doubt if we are going to experience a situation where there is going to be once again maximum fear and panic selling. We have probably past that phase now," said Badshah in an interview with CNBC-TV18.
“We are now inclined to assess incoming data both on the progress of the coronavirus as well as in terms of whatever is happening to policy actions as well as moves around the government’s lifting of the lockdown, which is going to probably determine the course of the market. I am not too sure if this is the phase where you have to start booking profits," he added.
Badshah advises investors to take a "middle path" at this stage.
"If you don’t want to be aggressive, you also don’t have to be completely defensive either. You have to take a middle path at this stage. We are right now taking aggressive bets in some cases and even being defensive in certain cases as the case maybe," he said.
Speaking about non-banking financial companies (NBFCs), he further mentioned, “We have reduced our 'overweight' call in some of the names and try to see whether we can move that same position into some of the banks because some of the private banks including the leading banks have collapsed or are trading relatively cheap on the valuation spectrum. So I think it makes good sense to do or bring that element of defensiveness into the portfolio."
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