There is a chance that between now and Diwali, there will a significant drop of between 10 and 15 percent in global markets, said Udayan Mukherjee.

“Whatever happens in the near-term, we should brace ourselves for another meaningful correction sometime between now and maybe even Diwali,” he added.

According to him, this year belongs to the large caps and he expects 2018 to be the year for largecaps rather than midcaps.

Talking about sectors, he said, “Some of the tractor and two-wheeler plays look more attractive given their relative valuations as well. Maruti is TCS like, evergreen. I do not think long-term investors want to get out of such a quality play but given where valuations are, the relative performance might be better in some of the other pockets of autos.”

“The kind of portfolio allocation that I think would work for the second half of 2018 is to focus on some of the select autos, select consumers, IT and pharma in the export basket and maybe a few select private banks. I would not want to own too much else particularly in sectors like maybe metals, telecom, NBFCs, PSUs, infrastructure and anything high beta,” he further added.