IT theme to sustain; 'hold' Zomato: Edelweiss Securities

When it comes to the new-age stocks, Narain believes investors need to take into account the long-term viability of the business models before diving head-first. He has a ‘hold' rating on Zomato for now.

"We cover Zomato on which we have got a hold recommendation," he said.

According to him, consumption has been concentrated at the top end and needs to go lower.

He said, "It’s going to be a time where the lower end, the bottom end of consumption starts climbing its way back, which is different from what we have seen so far, where it's been the top end, it's been a narrow segment that has been showing demand and consumption capability."

"Next year, that's going to be probably the more decisive thing that we will need to look at, which is the lower end whether it is two-wheeler demand or consumer staple demand picking up a little bit or the benefits of costs that come in, which plays to some of these businesses. So I would say that it is going to be a linear trend this year, that is probably not factored into the market," he explained.

Narain stated that he likes real estate assets more than the real estate stocks.

"We like the theme, and the likelihood of there being continued momentum probably a little bit more than we like the stocks at a portfolio level," he said.