The corporate profits are likely to accelerate going ahead, while the investors need to be careful on the risk in the market, says Vikas Khemani, Founder, Carnelian Capital.

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Speaking to CNBC-TV18, Khemani said, he sees a consolidation in the unlock trades, while the long term India story remains intact.

“India has been doing well and opportunities don't change very often. People continue to believe in India story from a medium to long term perspective. While markets have sort of done very well, the long term story remains intact. The usual IT services, manufacturing, BFSI, I mean the India story is just unfolding and we see corporate profit only accelerating from here over next 3, 4-5 quarters," he said.

However, with the recent sharp run-up where the markets scale up to new highs, he believes that some forth is getting build in select pockets and cautions investors to be careful about the risk right now.

"One has to be mindful of the risk, but at the same time, India's story does not change," he added.

He believes that most of the stocks have factored in the "unlocking theme" as the stock prices are closer to pre-COVID levels.

"We go to look at sectors from unlock perspective where consolidation has happened. Some of the hotel stocks are seeing consolidation and when the real economic activity picks up, they would have high operating leverage," he said.

But he advises remaining patient for that as we are still talking about the third Covid wave panning out.

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He believes the auto sector faces many challenges and the chip shortages is another added crisis. He remains cautious on the sector and advises to be selective.

"So we have been very, very cautious, we have not had much exposure to automobiles, for quite some time. The only stock we own is Eicher Motors which is slightly less prone to the so-called disruption, which is possibly on the cards,” he added.

Meanwhile, massive infrastructure spending across the globe is expected to happen and this will be positive for commodities. It also augurs well for the liquidity cycle.

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First Published:Sept 13, 2021 2:24 PM IST