Even as the market is witnessing a short-term rally, the concerns still persist and the recent bounce is the result of the fresh correction in the market, said Jonathan Schiessl, Deputy Chief Investment Officer, Westminster Asset Management in an interview with ET Now.
"Markets have had a reasonably decent short-term rally but there are still issues that we have not worked through. In the short term, the sentiment has been rock bottom and it was certainly due to see a bounce of some sort," he told ET Now.
Schiessl said in the current market situation, one should focus on large-cap stocks and private banks can be good long-term bets.
"I think that the way the market is at the moment, it is better to focus on the large-cap names versus the smaller cap names. We get lots of different parts of the economy when you are buying and Indian bank and particularly the private banks," Schiessl told ET.
"We maintain that having exposure to some of the better quality private banks is a very good long-term bet. There are periods of short-term underperformance but it is a good way of getting decent broad-based Indian exposure," Schiessl added.
Talking about new-age tech companies, Schiessl said the sector moves very quickly and there is a lot of stiff competition as well. However, one should understand the business properly before betting on that.
"There are a lot of choices and as we all know, the sector moves very quickly and there is a lot of stiff competition as well. There are some great companies there but one has to be aware of what is going on with the promoters as well as the underlying industry structure. It is an interesting space but one requiring a lot of work," said Schiessl.
Disclaimer: This article is based on an ET Now interview. The views and recommendations made above are those of the analyst and not of MintGenie.
