Now is the time to go into sector rotation rather than stepping away, said Sandeep Bhatia of Macquarie Group. Sector rotation is the movement of investors' money from one industry to another.

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“This is the time to look at stocks which have been beaten down and not necessarily chase the same names which have been driving the markets. So this is the time for sector rotation rather than stepping away but there is still a lot to be done," said Bhatia in an interview with CNBC-TV18.

Bhatia said that the geopolitics of the world is changing and that itself will play out to the benefit of India in the next five years. "India has to do a lot of things right to get the full benefit of that but this is definitely a favourable trend for the entire country. So remain invested but look out for laggards is the message,” he said.

Speaking about auto space, he said, “I think the contours of supply changing has just started. A lot of people are saying that India will not benefit. I would say India will benefit especially in parts of the economy where India’s domestic market can grow to scale or has already grown to a substantial scale. So auto, automobiles, two-wheelers are one such part of the economy which has already been globally competitive, demand and consumer demand is already of a certain scale and size and that can definitely participate. So you would have to look at laggards in this space."

On the consumer staple sector, he added, “For consumer staples, most of largecap stocks have done their play. The only probably laggard in the largecap name is ITC and there if we see tax stability which is still a big question mark, ITC can definitely run. ITC is one laggard which continues to remain very interesting. I wouldn’t chase the big majors in consumer staples in the next couple of months, I would look outside them.”

On bank stocks, he said HDFC Bank is a very high-quality bank. "I think the leadership transition has been done in the most smooth manner. I would welcome this kind of a smooth transition in companies that HDFC Bank has done.”

In terms of the telecom sector, he says Bharti Airtel is a very good and viable play. "This is one sector which has clearly done wonders for India. We would definitely like Bharti Airtel at these levels."