Even as our broader philosophy is to stay invested, one should alter portfolios in such a way that one doesn’t end up taking risks on low-quality companies, says Venugopal Garre, Head of Research, Bernstein India.

Although Garre believes that the market is going to see action in the fundraising cycle, he also cautions that not all the fundraising will be high quality.

Adding that the investors in the markets are searching for a big negative catalyst to bring down the markets, Garre said in the absence of any big negative catalyst now, the idea is to participate through various mechanisms.

“So we are taking an approach that certain sectors, which still look reasonable and may not necessarily be high growth sectors, need to perhaps have some positions there,” he said.

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According to Garre, the market resilience has primarily been interesting because the fundamental reality is that there is no earnings growth acceleration and no earnings upgrades.

“The only difference is that we are still in a decent macrocycle, earnings growth is decent, even if there are slower than what we saw in the previous two years,” he said.

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He believes it is very tough to justify stocks across the board from a valuation standpoint and long-term measures. So the broader macro strength, which is visible for the next few years, is ensuring that the domestic flows remain resilient and very strong.

It is not bringing up or pushing up markets, it is also ensuring that many of the broader initial public offerings (IPOs) and stake sales that one is seeing are also being digested, he mentioned.

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