Among the large-caps investors can focus on select stocks from sectors like banks, select pharmaceuticals, IT services, metals & mining, and oil & gas, said the report.
Market is expected to remain volatile in 2019 led by factors such as developed market slowdown, US-China trade fears, Brexit, domestic elections, movement in oil prices. Given that, it would be ideal to have a bottom-up approach, pick good quality, beaten-down stocks from respective sectors, Kotak Securities said in a note.
To weather the on-going volatility which may persist till the middle of CY19 (i.e. till general elections), it is ideal to have higher allocation into high earnings growth largecaps and in midcaps with strong management pedigree and reasonable valuations.
Among the largecaps, investors can focus on stocks from sectors like banks, pharma, IT services, metals & mining, and oil & gas, said the report.
Among midcaps, one can focus on stocks from sectors like capital goods, construction and auto ancillaries, it said.