Keep looking at opportunities and valuations around them: Harsha Upadhyaya, Kotak AMC

economictimes.indiatimes.com:

Harsha Upadhyaya, CIO-Equity, Kotak AMC, says “from a medium- to long-term perspective, we still continue to be quite positive on India from both earnings perspective as well as how markets are expected to behave. However, in the very short term given the kind of strong performance that we have seen and some reversal inflows as well as some red flags that I mentioned, probably markets would kind of show some weakness or consolidate at current level.”

Upadhyaya also says that “although the earnings expectations are much higher in the midcap basket, I would say that most of that positiveness is also discounted in terms of valuations. I would say, if the markets go into a correction mode or into a decline, we will probably see more downside volatility on the midcap side rather than the largecap side.”

Let us try and get your understanding of the current market movement. How is the market looking to you, talking about a few quarters down the line?
Quite bullish from an undertone perspective I would say. However, for the past two months, we have seen some red flags emerging as well as foreign liquidity turning negative. For September and up until now in October, we have seen foreign institutional investors selling about $3 billion worth of Indian equities. We have also seen crude oil moving up beyond $90 per barrel level and monsoon which ended the season with the deficiencies of about 6% or so is also a red flag.

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So, all in all, from a medium- to long-term perspective, we