S Krishna Kumar, CIO- Equity, Sundaram Mutual Fund, said that as the market faces a stormy situation, it is important to create a portfolio which is diversified across sectors.
"The idea is to focus more on stock-specific issues and play the company that has good quality management, good bandwidth and the ability to weather the storm," said Kumar in an interview with CNBC-TV18. “So buy stocks with visible growth and good managements and sit tight."
Indian benchmark equity indices, the BSE Sensex and NSE Nifty50, started Wednesday's trade largely flat, tracking weak Asian markets as slowdown and trade war concerns weighed on trade sentiment already hit by poor gross domestic product numbers and sluggish auto sales. On Tuesday, the Sensex ended 770 points lower at 36,563 and the Nifty50 lost 225 points to end at 10,798.
Talking about the themes that would play out in the medium-term, Kumar said they would be industrials, consumer discretionary and financials.
When asked if worst was over in terms of consumption slowdown, he said, the consumer slowdown has been manifesting itself in high-ticket items in automobiles and housing side and it impacts the economy.
“While we do believe there is a general slowdown, the sentiment is weaker than actual data in terms of what people are consuming. So, I do not subscribe to a deep slowdown and we may bottom out in the next one-two months or so,” he said.