Harsha Upadhyaya explains how investors can tackle market volatility
The President and CIO of Kotak Mahindra AMC believes the market has not yet corrected enough to consider fresh buying.
Harsha Upadhyaya, President and CIO of Kotak Mahindra AMC, says investors who maintain a well-diversified portfolio with fundamentally strong businesses will be able to safely wade through the current market volatility.
“Make sure that your portfolio is diversified and you are making staggered and disciplined investments rather than putting all eggs in one basket,” he said
On March 13, India's major midcap and smallcap indices plunged into the negative territory for 2024. The Midcap Index plummeted 2,115 points to 45,971. BSE-listed companies shed over ₹14 lakh crore in market capitalisation. The Sensex tumbled 906 points to 72,762, while the Nifty 50 dropped 338 points to 21,998.
Upadhyaya believes, India's growth story is not impacted at this point of time and economic growth and corporate fundamentals continue to be strong.
According to him, the market has not yet corrected enough for him to start buying. He will watch the market and then will take a call over the next few days.
Among sectors, he is positive auto space, particularly two-wheelers and passenger vehicle (PV) companies as demand remains strong.
Tractors and commercial vehicles (CV) have turned weak, so he would be cautious in these segments until the signs of recovery in demand are visible.
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Upadhyaya continues to remain positive on the overall healthcare theme - from a medium-term to long-term perspective .
According to him, real estate is one of the strongest themes in the market. “Demand continues to be very strong, no inventories left in the system and most of the established players have cleaned up their books and have started to grow in a reasonable manner,” he said.
However, he would wait for the valuations to correct a little more in real estate space as they have moved up substantially over the last few quarters.
He likes the city gas distribution (CGD) and cement sectors as well.
For more, watch the accompanying video
(Edited by : Shweta Mungre)
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