The concentration of fund inflows to small- and mid-caps, as well as overexposure to select sectoral and thematic funds is the reason for this caution.
The unpredictability in China is creating a sense of uncertainty that looms over the entire market, says the market expert
A surge in the number of investors gives more depth to the market, but it "doesn't necessarily increase the returns that an investor might expect", Arora said.
"When I look at Indian equities, they have proved to be quite resilient. Typically, one would expect Indian equities to underperform with the oil prices where they are today," the emerging equity market strategist said.
The market Friday closed lower on profit booking. The Sensex was down 248.03 points at 28797.25, and the Nifty slipped 85.80 points at 8866.70.
In yesterday‘s trading session the US market edged higher ahead of the employment report due today. S&P closed at 2105.26, highest closing since November 2015.
The market saw a correction of 300 points in the last two weeks; one can now expect an uptrend to last for four weeks or an upside of 600 points on the Nifty, says market expert Ashwini Gujral.
Globally, US market ended lower amid global growth concerns. Nasdaq closed down over one percent. Asian markets too were trading down in early trade.