The liquidity driven rally seen in markets across the globe is likely to pause now as concerns are mounting about the second wave of COVID-19 cases in the US, Arvind Sanger of Geosphere Capital said in an interview with CNBC-TV18.

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He said that incremental data points were not getting any better, and the situation was quite bad in India, with questions over the credibility of the data as well.

“India is in a tough spot, the best thing that can happen for India and India needs a quick resolution in terms of both treatment options that are fast and reliable and a vaccine," Sanger said.

"Till that happens, India is going to remain under pressure and will remain one of the underperformers. But once that (vaccine) comes, things will change but till that happens, India remains one where you have to be prepared for the long haul knowing that there will be bumps along the way on the road and there is no magic wand for the economy,” he said.

Sanger is bullish on telecom and consumption stocks.

"Telecom is an area that is a winner despite the Supreme Court’s (SC) somewhat strange actions but I think a couple of incumbents are beneficiaries and consumption of data is going up. So there you have a long-term thesis and pullbacks present an opportunity," he said.

"The consumption stocks may have got a little too far too fast, some of them because I am not sure, the structural story is quite as long-term as differentiated than telecom.

So I would say that if you are in stocks that have had a great run based on a hope rally and hoping that everything is going to be back to normal then those stocks are definitely ones you should think about taking profits. However, if you are playing for a long-term on structural winners post-COVID then I wouldn’t be too quick to get off the party unless one is a nimble trader and take a more long-term view of whether there is still significant upside over the next two-three years. That depends on an individual’s trading preference but also it depends on the kinds of stocks that one owns,” he said.

First Published:Jun 12, 2020 7:42 PM IST