Markets have not fully factored in China concerns, yuan devaluation: Andrew Holland, Ambit Investment

ET Now caught up with Andrew Holland, Ambit Investment, for his views on global markets with special focus on India. Excerpts:

ET Now: How does an investor approach the market right now?

Andrew Holland: Last time I spoke with you, I said I expected the market to head towards 8,200 levels. That has nearly happened now.

If you ask me what we should buy, I would recommend a wait-and-watch mode for now. I would rather allow the situation to play out a little more.

On days like this, I am quite happy to sit on the sidelines and watch the drama pan out. It is not the bottom as yet. We always overshoot as much on the downside as on the upside.

We have certainly not seen the end of it. To be honest, we are just at the start of this risk-off trading cycle.

ET Now: Markets are negative in dollar terms and have already erased the gains of 2015. Are you of the view that it is start of a downturn?

Andrew Holland: Last time we spoke, markets had not really started to factor in what was happening in China. It started to get factored in when the yuan was devalued. But it did not really frighten investors at the beginning.

Now, because currencies are devaluing at such a rapid rate, more and more investors are getting risk-averse — particularly in emerging markets.

India is largely okay as of now. But when risk is taken off the table, it affects all markets including India.