Where do you think market leadership in the near term is going to come from?
Besides the usual participation of banking which will continue, we will see participation from automobile stocks. These will be leaders if this rally. Metals will continue to participate as well as the market continues to go up. So, in addition to BFSI, auto and metals are the two spaces which will participate by way of provision and relative valuation attractiveness.
The temptation to book profits is there for every fund manager given that the macros are deteriorating — oil is at $70, yields at 1.5%. Are you resisting that temptation or are you going with the mood and taking some chips off the table?
Looking at the way the market has been moving, it has been really difficult to take such shorter term calls and trading calls. So what does one do? One part of the strategy is that in the equity allocation earmark, some percentage — 10%, 20%, 30% — whatever one is comfortable with, can be set aside for trading. In that you can keep on taking those calls and even if you go wrong, it does not matter. You can come back to the market at a higher level.
The second way is taking cognisance of only positive news. We have had some corrections but the market seems to be in no mood to take cognisance of negative news.
