Krishna Kumar Karwa, MD at Emkay Global, is bullish on the Indian market for medium term but is cautious in the short term.

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He believes one should be prepared for some price correction and time correction.

“We stay invested but if you feel uncomfortable or your asset allocation dictate too much in favour of equity, then there is no harm in taking money off the table,” he said in an interview with CNBC-TV18.

In terms of real estate stocks, he said, “My sense is that the real estate sector has been going through a downturn for almost 7-8 years and in the last three-six months, we are seeing some uptick because of lower interest rates and affordability factors. This is just the beginning as far as the sector tailwinds are concerned, we are very positive on the whole chain right from developers, to building materials, to housing finance companies. This sector has a large rub-off effect, we are very positive.”

Karwa is positive on the IT sector. He believes the sector is in a sweet spot and there would be better earnings growth. He advises investors to stay invested in IT stocks.

“From a two-three year perspective, I would be looking at more than 20 percent kind of compounding returns for the next three years. The sector is in a sweet spot, the investors who have entered should continue to remain invested,” he said.

In terms of metals, he said, “There can be more momentum but this is a cyclical sector, investors need to be very vigilant. If possible, stay away. There are many better opportunities to make money.”

Paint companies will continue to deliver steady returns to investors, he said.

For full interview, watch the video...

(Edited by : Niral Sharma)

First Published:Jan 20, 2021 1:07 PM IST