After providing spectacular returns in 2017, markets have been volatile and flat due to global and domestic factors. V Srivatsa, Fund Manager and Executive Vice-President, UTI Asset Management Company, expects markets to trend down or be flat with a negative bias. Given the current scenario, Srivatsa likes sectors such as information technology, pharmaceuticals, regulated utilities (power generation) and realty. Excerpts:
After a spectacular return in 2017, markets are flat in 2018 till date. Your view for the whole year ...
There are various factors for the flat market in 2018 till date. Sentiment in equity has come down a little bit due to imposition of long-term capital gains tax in the Budget. Global volatility has also increased in the last couple of months, primarily due to rising US treasury rates. The general sentiment is that bond rates across geographies are likely to go up. So, the days of ultra-low interest rates are over.
