Weak global indices fueled by global recession fears caused Indian equities to extend their negative rate of return for the year – Sensex and Nifty lost more than one percent each; the mid-cap index fell by more than 3%.
Talk to CNBC-TV18, Mihir Vora, Director and Chief Investment Officer at Max Life Insurance, said: “We are in a situation where the global headwinds are much stronger than the domestic momentum we are seeing in the economy. So I think what we can do is just wait and watch and try to change portfolios, depending on how quickly stock prices move.
Regarding equities and the sector, Vora said: “These are banking and financial services, the consumer theme – whether discretionary or non-discretionary – and infra and capex related themes. They should therefore continue to do well structurally in the medium term. »
He added: “Within banking and financial services, because we expect liquidity to continue to tighten at least for some time, I would prefer banks (over) non-bank financial services companies.
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