Harsha Upadhyaya, CIO-Equity at Kotak Mutual Fund, is of the view that the worst for the Indian economy is still not over and we will continue to see choppiness in the market.
"Management commentaries have been negative, there is increased volatility in the market – all these points to a situation that worst is still not over and we will continue to see choppiness in the market," Upadhyaya told CNBC-TV18 on Monday.
"Therefore, it would be challenging to find investment themes, so one should look at stock level opportunities and build those than look at sectoral themes," said Upadhyaya.
“There are opportunities in some of the mid and smallcap segment, especially in stocks where the valuations have corrected substantially and where one can see there is no medium to long term structural negatives,” he said.
Sector specific, he said, "Autos is a space where things could still don’t look good especially with high inventory levels, high valuations etc. So not a case yet for going overweight on the sector. Would wait for valuations to correct furthermore before turning the sentiment for the sector."
"Insurance space looks good and the house has an overweight on the space both in general as well life segments and has a multiyear call on the space, he said. Would continue to bet on some of the market leaders in both the segments," he added.
With regards to earnings, he said, “Consensus expectations were very high to begin with but in the quarter gone by, we haven’t seen those expectation being met. There have been muted set of numbers for Nifty basket and there has been some downgraded happening now with most brokerages cutting their numbers. Our in-house expectation is that maybe we will end this financial year with 12-15 percent growth.”