There are opportunities across the entire midcap space "given that India is a big growth market", according to S Krishna Kumar, CIO-Equity at Sundaram Mutual Fund.

Kumar said that if one is able to identify the right company, he can stay invested with conviction across a 5-year timeframe as the company would turn a largecap firm over a period of time.

"Therefore, investors should focus on to build confidence in the business models and the management and stay invested without worrying about short-term corrections and movements in the market,” said Kumar.

Talking about auto space, Kumar said, “We expect the recovery in cars and two-wheelers will be smoother going into the New Year but the commercial vehicles would see a bit of lagged response in the second half of the year; we will see some improvement in commercial vehicle offtake. The first half is going to be a bit of a washout.

On the pharma sector front, he mentioned, “The worry now is how the supply chain could be disrupted with what is happening in China because China is a big source of 7-amino desacetoxy cephalosporanic acid (7-ADCA) which is useful for antibiotics as a raw material. So we need to be watchful of the space from what the impact could come from the supply of raw materials."