Markets to see some consolidation before further upswing begins: Vinay Khattar

In a chat with ET Now, Vinay Khattar, Head Research (Individual Clients), Edelweiss Financial Services Limited, shares his views on the market outlook. Excerpts:

ET Now: What is it that you are advising clients to do right now because the market has given us fair returns year to date and from the February lows into the calm down to the election event, what is your position?

Vinay Khattar: We have been suggesting our clients for quite a while now to be long on the markets and there are two factors which are clearly playing out, one is playing rate sensitives be it in the banking or infra space and second is to be long on stock specific picks which could be in the midcap or small cap space which are good business model and high corporate governance plays.

Markets have shown fair degree of run up and it will not be surprising if there is some degree of consolidation which happens before the upswing further begins but post election as the market inch towards 7000, the upside risks clearly begin to emanate if the election outcome is not very favourable and in that sense certain degree of protection should be bought and clients should have a more even heel approach to market rather blindly going long at this stage.