Will likely see earnings growth of 12-15% in FY20, says Kotak Mutual Fund

“There are opportunities in some of the mid and smallcap segment, especially in stocks where the valuations have corrected substantially and where one can see there is no medium to long term structural negatives,” he said.

Sector specific, he said, "Autos is a space where things could still don’t look good especially with high inventory levels, high valuations etc. So not a case yet for going overweight on the sector. Would wait for valuations to correct furthermore before turning the sentiment for the sector."

"Insurance space looks good and the house has an overweight on the space both in general as well life segments and has a multiyear call on the space, he said. Would continue to bet on some of the market leaders in both the segments," he added.

With regards to earnings, he said, “Consensus expectations were very high to begin with but in the quarter gone by, we haven’t seen those expectation being met. There have been muted set of numbers for Nifty basket and there has been some downgraded happening now with most brokerages cutting their numbers. Our in-house expectation is that maybe we will end this financial year with 12-15 percent growth.”