Tirthankar Patnaik, Director - Institutional Research at Religare Capital Markets told CNBC-TV18, "Until we see clarity on inflation the portfolio positioning will remain guarded and defensive. So we remain overweight on IT. We have remained overweight on quality in general, but IT, pharma are our overweights."
He further added, "On financials, while we are talking about a peaking on rates we remain very concerned on asset quality. We don't know if the ramifications have really worked out in the system. So we would not be positive on financials at least until we see Q3 earnings come out. We remain underweight on financials. We are neutral on telecom and metals while marginally positive on consumer durables and negative on consumer staples."
"So all in all a defensive quality focused portfolio which might trail the benchmark if market does move meaningfully from current levels, but would stand us in good state if inflation does prove as chronic as we feel it would be," Patnaik said.