Pick up value stocks and don't put more than 30-40 per cent of wealth in equity: G Chokkalingam

In a chat with ET Now, G Chokkalingam, Managing Director & Chief Investment Officer, Centrum Wealth Management, shares his views on market outlook on the cusp of the earnings season:

ET Now: What is your view on the market, considering we are on the cusp of the earnings season?

G Chokkalingam: We have been advising the clients to be cautious for next six months. We have told them not to put more than 30-40 per cent of the wealth in the equity. Within equity asset class, we advise them to go for defensives as from mid-October, we see scope for lot of adverse news flows—starting from the corporate earning, headline inflation number, reverse debt ceiling issue and fiscal balance.

The fiscal deficit could be equivalent to the full year budgeted fiscal deficit. We suggest to go highly defensive; for long term investment, be stock specific and pick up lot of value stocks which are being battered throughout this year.