Aberdeen Asset Management has maintained an overweight stance on India, Adrian Lim, investment manager-Asian equities, told CNBC-TV18.

“It’s a good time for Indian equities and the market seems to be looking through the challenges that the economy has in the Indian market which are substantial and real. So, although we are maintaining our overweight position on the Indian market as a whole, we are selective about what we hold,” he said.

On the IT space, Lim said that technology stocks in India are not expensive currently.

“These are not expensive stocks. The structural shifts are real and are here to stay. An increasing trend towards online consumer behaviour can be seen. Consumers are now increasing options to do some of the transactions online and virtually and that’s the next wave that will drive demand for hardware, software and services as well,” he said.

According to him, internet businesses in India look interesting but need to be cautious on valuations.

“In the next 5-10 years as a portion of the Morgan Stanley Capital International (MSCI) or Sensex, these companies will increase but we do need to be careful as valuations are a challenge. They don’t always follow traditional methodologies for valuations,” Lim said.

For the entire interview, watch the video

(Edited by : Anshul Majumdar)