It was a flat end to a volatile week for the markets with Sensex and Nifty closing flat after swinging between gains and losses. The Nifty slipped just three points while the Sensex gained 37 points. The Midcap index gained for 11th consecutive week despite falling by over 100 points on Friday, September 2.
Speaking to CNBC-TV18, Harsha Upadhyaya, CIO of Equity at Kotak Mutual Fund believes that volatility is here to stay as there are many macro headwinds.
“Volatility is here to stay. There are many macro headwinds which are there for everyone to see. So to that extent every now and then you will see choppiness in the market,” he said.
According to Upadhyaya, the festive season is going to be very strong across the board, especially for autos.
“In terms of demand, we believe that the festive season is going to be very strong across the board whether it is discretionary or non-discretionary. However in terms of stock performance we are more positive on autos where there has not been much of a performance for the last several years for various reasons. However now everything seems to be falling in place for that sector. Given all this and the fact that valuations are reasonable, we should see the auto sector outperforming," Upadhyaya said.
Watch video for more.