Need to navigate this challenging phase carefully: Harsha Upadhyaya, Kotak MF
Harsha Upadhyaya, CIO-equity at Kotak Mutual Fund, spoke to CNBC-TV18 about the trends in domestic markets and outlook.
“It has been a challenging phase for the market and there haven’t been too many absolute buys. Whatever is safe is expensive and whatever is beaten down have a lot of issues, so one will have to navigate this phase carefully,” Upadhyaya said on September 9.
“We are not increasing our cash levels but are cautious in terms of investing the cash that is coming into the funds. We generally maintain not more than 7.5 percent cash levels across active portfolios. In a bull market, the bullish news gets amplified and in a bearish phase, negative sentiments rule the roost. So everything may not be as bad as it is coming out to be but at the same time it is not likely to be a V-shaped recovery, it will be a slow grind,” said Upadhyaya.
When asked if he would be concerned about the banking sector, he said: “At least until now we haven’t seen any risk building up on the retail side for banks. There is a scare that if things keep worsening at this scale at some point of time there could be some issues on that side but as of now that book is stable.’The NBFC segment which led to freezing in credit markets over the last one year, hasn’t really impacted the asset quality of some of the banks that were good in terms of asset quality.”
“So, on a generality basis, one cannot say that all banks have a lot of risks or are all are good, one will have to look at them from a stock-specific perspective, taking valuations into consideration and construct a portfolio,” he said.
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