Emerging Market strategist Jonathan Schiessl believes that Europe, going into a heavier lockdown, has shocked the markets and has provided the opportunity for a bit of profit booking. However, he expects the short-term swings to offer a good entry opportunity for investors.

He said, "What has spooked the markets in the very short term is probably the news coming out of Europe, that it is potentially going back into a heavier lockdown than perhaps was expected. Therefore, that has perhaps provided an opportunity for a bit of profit booking in some of the more cyclical sectors. Also the dollar has been strengthening over the last few weeks and that is also spooking the emerging markets in the very short term as well."

"In the short term, there are going to be these swings that we are currently going through due the spike in COVID cases here and there but short term bits of volatility do provide opportunities for investors," he said.

Schiessl said investors need to have a balance of cyclical & defensive stocks in Indian markets.

"India continues to be a fascinating market. While we have said that you shouldn't abandon the IT, healthcare side, the COVID winner's side and go full on to the whole cyclical and banking areas of the market, but you need a balance of both."

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(Edited by : Bivekananda Biswas)