Jitendra Gohil, Head-India Equity Research at Credit Suisse Wealth Management on Friday said that he is relatively positive on equity compared to bonds and other asset classes from a 6-9 months perspective.

“We are going to see inflation rise from here onwards and globally also we have seen that the trend is towards slightly higher inflation going forward. So, we feel that in a rising inflationary environment, equity as an asset class is better positioned,” he said in an interview with CNBC-TV18.

According to Gohil, the second wave of COVID will not have a major impact on the earrings as well as the economy.

“We feel that this will be a small blip. We think that the way cases have risen substantially over the past few weeks, the cases will also fall sharply going ahead at least in the next 15-30 days. So, we think that from an economic perspective this won’t have a major impact. We think another 100-150 basis point cut on GDP estimates. But from an earnings perspective we don’t see that this is going to be materially impacting as localized lockdown and restrictions may have limited impact on the listed space,” he said.

He also said that they are positive on cyclical over defensives and midcaps versus large caps over the next 6-9 months.

“Given our positive view on macro recovery in the second half, we feel that this is a good time to buy cyclicals. So, our portfolio is mostly tilted towards cyclicals versus defensives. We think that this dip could be a good buying opportunity for private banks and some of the metal or commodity stocks,” he said.

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(Edited by : Abhishek Jha)