The market ended the week flat with the Nifty ending mildly in the red and the Sensex with very mild gains. But how should one trade the market next week and what are the investment ideas in case the market corrects more?
Harsha Upadhyaya, CIO Equity, Kotak Mutual Fund believes the current correction is a healthy one but cannot say if it is going to go any deeper or not, as yet.
With regards to investing, Upadhyaya says at the fund house they have a policy of not keeping more than 7.5 percent in cash in any of their equity funds and so they will have invest with caution. Upadhyaya says they would avoid chasing momentum but build a portfolio that has reasonable valuations.
With regards to inflow of liquidity, Upadhyaya says at their end they haven’t seen any reversal in money flow at any level whether it is retail or high net worth individuals. The flows continue to remain very consistent and strong.
Talking about GST impact, Upadhyaya says one is unlikely to see any fundamental adverse impact on the demand per se just because of tax implementation.
Stock specific, Upadhyaya says they are underweight on IT and pharma and would be very selective in housing finance and micro finance space.