Do not chase what is looking very safe now: White Oak Capital's Prashant Khemka

Prashant Khemka, the founder of White Oak Capital Management, said in a CNBC TV interview that he was not investing in the sectors which are looking safe now.

Speaking on CNBC TV18, Khemka gave examples of COVID-19 times when many analysts said that the pharma sector would be a good buying opportunity. However, that was the worst sector in that market.

“We remain well balanced across the board and do not try to chase sectors which are in a good spot. We have invested in some of the community stocks, IT services and financials,” Prashant Khemka said.

Khemka says that India is suffering supply chain disruptions due to China lockdowns and Russia Ukraine war and it seems might go on for a very long time.

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“Market concern is inflation likely to stay higher for a long time because China is putting strict lockdowns and unlikely settlement between Russia Ukraine war,” Prashant Khemka added.

US Consumer prices jumped 8.3 percent in April from 12 months earlier. That was below the 8.5 percent year-over-year (YoY) surge in March, which was the highest rate since 1981.

Meanwhile, India CPI inflation rose to 7.8 percent year on year in April from 7.0 percent in March, above expectations, reflecting a broad-based rise across food, fuel and core inflation.

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Local equities fell since the start of the year on the expectations of tightening policies from central banks amid higher inflation. Indian markets fell for eight out of nine sessions and lost around 8 percent in this period. So far, in 2022, both Sensex and Nifty declined around 9 percent each. BSE All listed market cap erased over Rs 28 trillion in the last nine sessions.