Mihir Vora, director & CIO of Max Life Insurance, spoke to CNBC-TV18 about the fundamentals of the market and policy expectations.

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"It would be a good thing if the market were to pause a bit because we already had a sharp rally, which was not backed by improving fundamentals and now we entering the election season," Vora told CNBC-TV18 on Thursday.

With regards to the monetary policy, he said, "The market is not expecting anything harsh and so it may not be a major event. Globally as well the US Fed, ECB have been turning dovish."

Talking about weak monsoon forecasts and slowdown in consumption, Vora said, "Consumption has been slowing both in the staples and durables segment and so the leg that was holding up GDP growth rate is showing signs of slowing and if monsoons were below par then it would set the clock back a few quarters. Given the fiscal situation, the new government would have limited scope to pump price the economy."

Sector specific, he said, "It would be better to wait for some more time before entering the auto space, although valuation wise they warrant a buy."

On the banking space, Vora said, "The NPA cycle seems to be behind at least for the larger PSU and private banks and we might see some right backs next year onwards."

First Published:Apr 4, 2019 10:55 AM IST