Avendus Capital Alternate Strategies on Tuesday said the house is upbeat on consumer discretionary, private banks and industrials, but avoid auto space.
In an interview to CNBC-TV18, Vaibhav Sanghavi, co-chief executive officer said, "The regional flows into emerging markets have been consistent, but because of the geopolitical tensions, India was underperforming other emerging markets. Going forward, if the emerging market flows remain strong and exchange-traded fund flows continue to be strong, then we could see some amount of recovery from here on."
Sanghavi said, "Once the uncertainty of elections etc. in the first half is over, we may see some shift from large-caps to midcaps again but not as of now."
Information technology (IT) is usually preferred space in the volatile environment, said Sanghavi as the quality of their business is insulated from volatility to an extent.