The recent dip in oil prices is negative for the world economy but positive for India because it is a net importer of crude oil. Lower oil prices mean lower import bills, which can help to reduce the country's current account deficit. This, in turn, can lead to a stronger rupee and lower inflation, which is good news for Indian consumers.

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In an interview with CNBC-TV18, Sanjay Mookim, Strategist and Head-Equity Research at JPMorgan India said that the decline in oil prices is a positive development for India but negative for the world.

He said, “For now, oil is a signal of relatively weak demand on the ground. This is something that makes India stand out positively relative to emerging markets (EMs); the 20-year chart of India relative to EM correlates to oil beautifully.”

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Talking about his investment strategy, Mookim emphasized that he would continue to stick to large-cap names. This is because large-cap companies tend to be more resilient and can weather economic downturns better than mid-cap and small-cap companies. Mookim believes that investing in large-cap companies is a safe bet in the current market scenario.

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Mookim also shared that he won't buy into the IT space just yet. Although the IT sector has been performing well in recent times, Mookim believes that it is important to exercise caution before investing in this sector. He advises waiting for a better entry point before deploying money into the IT space.

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He also expressed his caution about investing in mid-cap companies now. He believes that the market is currently overvalued, and investing in mid-cap companies may not be the best option right now. He advises waiting for the right opportunity before investing in mid-cap stocks.

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