Bank Julius Baer & Co like Indian equities even though the firm is horrified with the impact of the second wave of COVID-19, said Mark Matthews of the wealth management group on Friday.

“I like it (India); of course, I was horrified by the second wave, but this will be followed by great changes and we cannot know what they are. We will be able to look back and understand the connection, but there will be second or third derivatives of the tragedy,” Matthews told CNBC-TV18.

We remain overweight on India, he added.

“Sometimes, strangely, negatives produce positives and so I do expect India to come out of this and even strong and wanting to rebuild. We were overweight on India a few months ago and we stick with it. However, I do not know if today is the time to buy but we like the market.”

On sectors, Matthews said, “I would like materials and cement and beyond that, we have been fans of financials. We do like pharmaceuticals and technology space; of course, the big tech stocks in India have become different from what they were 10 years ago.”

On inflation worries, Matthews said the US market liked the Fed sneaking taper in its minutes.

“The market liked the Fed sneaking taper into its minutes. It didn’t use the word ‘taper’, but it said something like that that in coming months we need to talk about reducing our asset purchases if the economic data remain strong. The market likes that because it shows that somebody is there and if there is a big pickup in inflation then they will be there to respond,” said Matthews.

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(Edited by : Ajay Vaishnav)