With inflation under control and low-interest rates, Roha Asset Managers believe that the Reserve Bank of India (RBI) may cut interest rates further.

In an interview to CNBC-TV18, Dhiraj Sachdev, managing partner and chief investment officer, said, "The market will sustain the wall of worried despite all the noise on 2019 Lok Sabha elections and US-China trade war uncertainties."

Sachdev said one will have to be very selective while investing in the small and midcap space, "In the recent fall, they bought several businesses bottom-up like jewellery retailing, liquor companies, optical fibre, lighting companies, speciality chemicals businesses, pipes, machine tools etc."

"The house is also upbeat on non-banking finance companies (NBFCs) space but selectively, especially gold and microfinance as they do not have asset quality mismatches and wholesale borrowing issues," he said.