Betting on long end in market makes perfect sense: Badrish Kulhalli, HDFC Life

In a chat with ET Now, Badrish Kulhalli, Fund Manager Fixed Income, HDFC Life, shares his outlook for the markets. Excerpts:

ET Now: Do you think it makes perfect sense to bet on the long end of the market? The short end of the market will remain volatile, but the long end will definitely make sense. What is your take?

Badrish Kulhalli: Yes, the long end definitely makes sense. But the key point is that the short end is not as volatile now as it was, say, about six months ago. Over the last three months, the RBI has been quite proactive in terms of managing liquidity. Whenever there has been excess liquidity in the system, they have conducted reverse repo auctions. They have also taken relevant measures to contain deficit too.