Rajesh Bhatia, MD and CIO of Investment Trust of India (ITI) Long-Short Equity Fund in conversation with CNBC-TV18 has said that at present it is not a short market, it is a long market. "Our short book is far lower, relative to what we would had in normal market conditions. This is basically an acceleration of PE ratios of the equity class, thanks to what has happened globally with the kind of liquidity unleashed and today the thesis of India is that we are at the cusp of an earning cycle, cusp of a new credit cycle. If that is the thesis, then the breadth of the market is going to be far broader," he added, when asked what his short positions were.

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"You will have to find companies which have weak balance sheets, companies which are not delivering well and that is unfortunately now a smaller canvas," he further explained.

Speaking about the market, Bhatia elaborated, "We are getting into a level where we are starting to discount even financial year 2023 and people have incorporated a good amount of earnings growth at least 19-20 percent earnings growth even for financial year 2023. But I think we are not getting the signals that we have seen a top. So it will be little more uncomfortable than what we are used to given the conditions but there are no indications yet that a top has been reached so stay invested for the time."

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(Edited by : Jerome Anthony)

First Published:Feb 8, 2021 2:18 PM IST