Focussing on auto sector: Prateek Agarwal, ASK Investment Managers

Prateek Agarwal, CIO, ASK Investment Managers, in a chat with ET Now, gives his market strategy


What is the best way to protect capital in such a volatile market?

In the equity markets, the volatility would remain for some more time. Media is focussing on the VIX, crossing 40 etc. but the past has gone up significantly higher though for a shorter period of time. So while over a 5 to 6 months period, yes volatility will reduce but over that period, it would remain. So what we are doing at our house is to focus on companies very high degree of visibility on cash flows with very low probability of them required to assess the capital markets and using all of those kind of filters. In terms of themes, then the areas that we are focussed on would be rural, would be two wheeler, autos, would be gold theme and to some extent private sector banks. So these are the areas where we are focussed on where while there may be some impact on earnings, it would be probably significantly lesser than the other part of the broad market.