Too soon to start buying in Japan, India a safer bet: Veda

The Japanese market might have stabilised but Vikas Pershad of Veda Investments says it is too soon to start buying there. He finds India to be a safer haven as he sees good buying opportunities here. "India hasn't sold off too much," he says adding that we are largely driven by the domestic story; "we are not impacted by what is going on in Japan or in Europe, aside from the risk appetite. So in the short-term, I think we would see India outperform".

Though foreign institutional investors (FIIs) are still concerned and hesitating to invest in India, he says we are close to the beginning of a long-term growth story. However, he does not expect a big jump from these levels anytime soon. "We have probably seen the lows at around 5,200-5,250 or so for the short-term," he adds. Pershad finds mid-caps attractive and says there are plenty of buying opportunities in that space. "There is a lot of uncertainty around government regulations here, thus giving good buyin opportunities," he says. His bets in the space are Jain Irrigation, UTV Software and Gitanjali Gems. "Gitanjali Gems is multiple ways to win; the multiples are low, the fundamentals are improving especially here on the ground in the US and there is news about PE groups being interested in certain parts of the business, which should drive the valuations higher," Pershad points out. His key bets in India are the biggies like Reliance Industries, ICICI Bank, HDFC Bank and technology companies. Will the Indian market bleed more?