"It would be wise to stay cautious and do selective stock picking than taking a big call on the market," said Mihir Vora, director and chief investment officer at Max Life Insurance.
Mihir Vora, director and chief investment officer at Max Life Insurance, spoke to CNBC-TV18 about the current trends in the stock market and valuations.
"Markets are volatile because of both the macro and political headwinds. As we head closer to election time, it would be wise to stay cautious and do selective stock picking than taking a big call on the market," Vora said.
According to Vora, the market so far has behaved in an organised way and only the troubled spaces have got smashed.
"Market as of now is behaving in a structured way where people are taking stock specific calls than panicking for the market as a whole," he said.
With regards to the valuations, he said, "The mid and smallcaps indices have been down for almost a year now and one could look at options in these spaces. However, within largecaps polarization has been very high especially within top 10-20 stocks of BSE 200, even Nifty50 one could find good relative value picks."
Sector specific, he said: "IT and exporters still look good because the currency tailwind is likely to continue. Moreover, with a broad change in the overall RBI stance interest rate sensitives have also become interesting than earlier like private sector banks both retail and corporate."Source: CNBC-TV18