Friday's rally not an invitation to buy into equities: Supreeth Shankarghal

In a chat with ET Now, Supreeth Shankarghal, CEO, QF Assets, shares his views on whether the time has come to start nibbling into equities.

ET Now: What did you make of the relief rally which came in on Friday? What is your assessment of the markets in the coming weeks as far as India and the emerging market (EM) pack is concerned?
Supreeth Shankarghal: On Friday, we saw a relief rally after days of relentless selling. This is not a rally to buy into. This kind of rally happens when we have days of selling. Going forward, we expect that the market will be very choppy. One cannot clearly expect that the bottom is in place. It is not going to be a smooth ride from here on at least for the next few days. So, one has to be very cautious.

Of course, the valuations have become cheap. Many stocks have lost about 30 per cent to 40 per cent (of their market value). This has happened even in the headline mainstream stocks. So some value can be picked. But I would be very cautious to make any call on medium- or long-term plays in this kind of a market.