Andrew Holland, chief executive officer of Avendus Capital, said a lot of negatives in the market have already played out in September and the valuations have started to look interesting.

According to him, there are some clear winners starting to emerge and the reasons for them to turn positive are: "One- over the past month, the RBI has not increased interest rates which is good for liquidity and they also seem to be accommodating whenever there is a need for that. Two, the rupee has been more stable and three, the oil prices have come down. All those are the positives for the market.”

"However, all these positives are being ignored at the momentum just like they previously ignored all the negatives", said Holland, adding that once this turns, the index would be led by banking sector and not the IT sector and so one must ride in that respect.

Another catalyst for the market would be if the US and China were to do some trade deal ahead of the US mid-term election, he said. Moreover, China GDP for the third quarter also does not look too bad at 6.5 percent and so the fear of China slowdown could also be put at the back burner, he added.

First Published:Oct 19, 2018 11:26 AM IST