Leo Puri, managing director, UTI Asset Management Company, said that there is no sign of panic in the market, but it's more of a consolidation.

In an interview to CNBC-TV18, Puri said, "The redemption levels are within the control. But it's rational for retail household investor to look at their portfolios and do some asset allocation and take some risk off the table from time to time."

Talking about global events, Puri said, we need to be vigilant on issues like trade skirmishes and crude oil prices, "Trade war is likely to escalate because US President Trump is playing game of brinkmanship and he will keep upping the stakes and so do not expect a quick climb-down.”

However, India clearly needs to balance its relations with US, China and Europe, Puri said.

Accessing crude from Iran will be a subtle game of diplomacy, especially when US has a different worldview on Tehran and will definitely increase volatility in terms of overhand on Indian markets over the next few months, Puri added.

According to Vetri Subramaniam, Group President and Head-Equity, UTI Asset Management Company, large part of the flows are still accounted for the Systematic Investment Plan (SIP) book.

"Pretty optimistic that flows will hold up in terms of SIP book,” he said.

Vetri said from an investing point of view, valuations remain a challenge and one does not know where the headwinds would come from.

Amandeep Chopra, Group President, Head of Fixed Income, UTI Asset Management Company, said, "At 68.5, the rupee seemed to be fairly valued. But the headwinds like trade war, higher crude oil price, Iran issue etc. are still there and remain strong for the rupee.

“So, it's quite likely that the rupee may depreciate further from here. However, structurally, the current account deficit could be strong and rising, which will keep rupee under pressure," he added.

Chopra said, the house expects the 10-year yields to breach 8% and he expects two more rate hikes from the RBI.

First Published:Jul 9, 2018 3:03 PM IST