Valuations are on the higher side for the market overall and also for the midcaps in particular, said Harsha Upadhyaya, CIO Equity, Kotak Mutual Fund. "So the corrections witnessed could be due to nervousness at higher levels", he said.

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He advises to tread with caution as the upside for the market seems to be capped. "Market is facing several headwinds in terms of higher crude prices, weakening currency, higher interest rates globally etc.," said Upadhyaya.

According to him, the market has been resilient and has ignored the negatives so far, but one must be cautious and look for bets in the largecap space.

When asked where one should look for investment ideas, he said there was nothing in value zone but some themes like consumption, cement are doing well.

"Cement looks good because things will only improve for the sector and there is no big capacity coming on stream, so the capacity utilisation will be high", said Upadhyaya.

He said earlier the house was overweight on autos in all their funds but now they are only overweight on some of the rural dependent names like tractors and two-wheelers.

First Published:May 16, 2018 10:57 AM IST