The markets have been correcting very sharply over the last couple of weeks. Edelweiss Securities' overall view on the market remains bearish to negative, said Vikas Khemani. "We are still not in favour of equity markets at this point in time as the risk-reward of equity continues to remain weak," he added.
However, he suggested opting for the fixed income instrument for the best risk-reward in the current volatility.
Shifting his focus back to equities, Khemani advised looking for defensive plays. In banking sector, ICICI Bank is one of the banks, which would perform well, he recommended. Here is the edited transcript of his interview to CNBC-TV18. Also watch the accompanying video. Q: How will you use this rally? Will you ask your investors or clients to selloff the little stocks that they have?
A: The markets have been correcting sharply over the last couple of weeks. Our overall view on the market remains bearish to negative. We are still not in favour of equity markets at this point in time. The risk-reward of equity continues to remain weak.
We are advising investors to remain defensive in portfolio keeping more cash and use the opportunity to trade cash. There will be points in time where one can get an opportunity to invest in markets or the risk-reward of the equity will probably turn some point down the line. Q: What sort of asset allocation recommendations are you giving your clients at this point in time if you are a little pessimistic on equities?
A: It depends on the risk profile that one carries. If you are an individual investor, the best risk-reward is offered by the fixed income instrument at this point in time. As the interest rates starts coming down, you get a good high yield and a very handsome capital appreciation.
For a year
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
