For 2018, he expects the markets to stay volatile due to rising oil prices, which, in turn, will affect the current account deficit.
Speaking on sectors, he is upbeat on the rural theme being a decade growth story. The economy is coming back into upswing in 6-8 years and there has been pick up in some segments, he said, adding that car sales were good too.
Speaking on a sectoral basis, Upadhyaya said that he is still underweight on the IT space, despite the run up seen recently.
Speaking on the economy, Vetri Subramaniam highlighted that there has not been much strength in capex cycle, while capacity utilization has also not risen dramatically. Therefore, capex itself is at a weak ebb, he said.
According to Association of Mutual Funds in India (Amfi) data, investors have poured in a net Rs 1.06 lakh crore in mutual fund schemes last month as compared to a pullout of Rs 1.75 lakh crore in December.
There is room for more FII money to come in this year. So largecaps could do better as their relative valuations are better too, Mahesh Patil of Aditya Birla Sun Life AMC told CNBC-TV18.
Speaking on valuation issues, Tushar Pradhan highlighted that they did move higher last year and PE expansion also contributed to returns from the market.
Manish Sonthalia expects the taxation to return to equity given the lower GST collections along with economic scenario.
Manish Sonthalia also said that telco ARPUs could have bottomed out and a tariff hike is likely to be around the corner.
Shah said that lower base effect to help earnings numbers and believes bank recap, a game changer, will help in better credit growth.
S Krishna Kumar said that the bank recap step changed the framework with which PSU banks will be seen. He expects cement, infra stocks to get better as well.
Mahesh Patil of Birla Sun Life believes that the Street currently could be reacting to cues such as higher current account deficit (CAD), pressure on the rupee and developments around fiscal deficit as well.
Says economy will continue to grow and that will drive up the equity markets going forward.
Kotak MF’s Upadhyaya said that September and December could be slightly better quarters due to GST-hit sectors seeing some recovery.
Says high inflows into MFs is a challenge, but one has to stick to the core and not be swayed by ‘SMS-based recommendations’.
Companies such as Bajaj Finance and Capital First, among others, have been able to innovate, use technology, disrupt markets and gained advantage among competitors to pursue higher growth.
Tushar Pradhan of HSBC Global AMC said that the plan is always to stick to the investments once they have been made, but evaluating based on valuations is necessary
S Krishna Kumar of Sundaram Mutual Fund said inflows into financial instruments have been steady and there has been no major trend change.
Harsha Upadhyaya of Kotak MF said from 3-5 year perspective, one can invest in staggered ways.
S Krishna Kumar of Sundaram Mutual Fund said that the earnings have been pretty good and that retail private banks have seen strong delivery.
Interview with Sunil Singhania of Reliance Mutual Fund
Nilesh Shah said that the approach in the market should be that of bottom up one.
R Sukumar of Franklin Templeton Investments said that in this market, one could look for stock ideas which are undervalued.
Mahesh Patil of Birla Sun Life AMC believes that a recovery could be seen in the coming quarters. On retail sentiment, he said that SIP flows are seen at around Rs 6,000 crore a month.
Harsha Upadhyaya of Kotak Mutual Fund believes that the pace of earnings recovery against inflows are slower. He likes consumer discretionary space and cements, and sees downside for IT.