Clean up your portfolios amid market rally: Sridhar Sivaram's advice to investors

The investor flagged concerns about the potential impact of US rate hikes on global markets, mentioning Indian interest rates are unlikely to be cut soon.

Investors should clean up their portfolios as the exits that are available now, may not be here again, said Sridhar Sivaram, Investment Director, Enam Holdings in an interview with CNBC- TV18 on July 6.

While advising investors to overcome their Fear of Missing Out (FOMO) by clearing out portfolios during the best time possible, Sivaram highlighted that “cash is king”. Suggesting a temporary departure from the equities, Sridhar is looking towards the promising fixed deposits arena.

He pointed that fixed deposit is a strong investment space presently, with Banks offering good rates in the short term. “Just park there for six months and see how things play out. I'm not saying sell entire equity. But there are pockets where you see irrational exuberance, it's worth looking at some of those and wait for six months to see how things play out” he said.

The investor flagged caution towards the potential US rate hikes and their impact on the global markets. He said that even if the Indian interest rates do not go up, they are not going to be cut anytime soon. The upcoming elections will also impact the Indian markets, posing uncertainties.

Sivaram believes that despite the rally in Indian markets, one should not mistake the bullish market for brilliance. “These are not constructs for great bull markets” he said.

Also Read: Euphoria in the Indian market needs to factor in what will happen in the US: Enam's Sridhar Sivaram

The market veteran is not bearish on the Indian markets but admonishes short term investments due to the upcoming macro and micro challenges. “I'm not bearish on the Indian markets over the medium term, but in the short term I'm really not very sure whether we have too much of upside” he said.