AMFI has recommended various means, such as rebalancing portfolios to increase the weightage of largecap stocks, and moderating flows into small and midcap funds.
Santosh Kumar Singh, Fund Manager at Motilal Oswal AMC, expresses concerns about those areas of the market which have shown sharp corrections and high valuations. He is bullish on auto components, technology in vehicles, and capital markets. He sees potential growth in certain sectors while cautioning about mid and small caps.
Indian equity markets thrive on policy continuity, investment-led growth, corporate earnings, and liquidity. The RBI policy remains unchanged, focusing on inflation and cues from the US Fed. Valuations favor largecaps. SIP investments provide diversification across market volatility. Geopolitical tensions and the global interest rate cycle pose risks to equity markets.
Satish Ramanathan says: Execution may be a challenge for some infra names, which is why trimming or reallocating profits to more defensive options is being done. In the case of defence, execution and ramping up takes time. In general, there is a slight recovery on the agri side and a recovery in consumption from rural India. Two-wheelers would be an area where the cost benefit is favourable and we also see some benefit coming in from some of the IT names as well, where the risk reward is favourable.
Hiren Ved says: “I continue to be extremely bullish for the next couple of years. There is no reason to be bearish. You should be mindful of what you buy, at what price you buy. You will have to keep a long-term horizon. But the kind of wealth that we will make in this cycle is going to be unbelievable. Meanwhile be confident and prepare for the worst.”