In an exclusive interview with Money9, Sudip Bandyopadhyay, Group Chairman, Inditrade Capital, shares insights on why markets have turned increasingly volatile.
He believes that investors’ risk appetite globally has gone down due to the rising US bond yields and covid cases which have dampened the sentiments. also, profit booking and year end adjustments are leading to heightened volatility in markets.
Bandopadhyay said, “Believe the strong underlying bull trend continues structurally we are in a good phase. There still is huge liquidity which will support markets going forward and therefore am bullish for the medium to long term.”
He also talks of how the recent correction has given excellent opportunities to investors however says that one must look at sectors and companies which have a long term potential and are backed by sound fundamentals and management.
On the concerns of the second wave, he says that long term investors must look through the near term pain of the pandemic as there is a vaccine now and things will be normal in some time.
” To create a well diversified portfolio one may look at adding strong names from construction, infrastructure as the government is looking at a huge capex in such sectors. One may look at also adding financials which have corrected as when the nation moves back on high growth path, they will benefit. Pharma and IT are also going through re-rating, so one may look at adding good names selectively,” he said.
Watch the video for the full interview:
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