Adity Birla Sun Life AMC has gradually increased equity exposure from 37% six months ago to 62% now. “Gold is a good hedge. We have seen that. That is how we have a good asset application as the markets have corrected, some of the counter-cyclical indicators are suggesting this is a good time to enter into the market,” he said.
Also Read | Kotak’s Nilesh Shah: Market excesses corrected, time to start accumulatingInvestors should not expect a sharp bounce back like the ones seen in past cycles. “We will not see a sharp recovery. The market momentum clearly has broken. In the last six months or so, there is some amount of pain, even the corporate earnings recovery will be slow and gradual,” Patil explained.
Patil points out that after the recent market correction, many quality stocks are trading at reasonable prices. “As a fund manager, I see good value emerging in stocks, which you want to buy from a long-term perspective, which earlier, you couldn’t because the valuations didn’t fit into your valuation framework,” he said.Also Read | Raamdeo Agrawal’s advice: ‘Don’t hesitate to start buying if…’
Sectors like cement and metals, which did not perform well in the last cycle, might improve in the future. Some leading sectors that were strong earlier could also bounce back if their prices have corrected and their valuations are reasonable. If the growth outlook remains positive, especially in industrial and capital goods, he will focus more on specific stocks in these sectors moving forward.
While short-term volatility remains, he believes this is a good time to gradually enter the market with a long-term perspective.
For the full interview, watch the accompanying video
Catch all the latest updates from the stock market here
