Investors should be positioned in fundamentally strong businesses which can take bouts of volatility in the current market scenario, said Pramod Gubbi, co-founder at Marcellus Investment Managers.
Gubbi said fundamentally strong businesses can withstand a volatile market with stronger balance sheets and stronger pricing power, and will eventually emerge out stronger with a larger share of the market in the long term.
"I think investors should look at fundamentally strong businesses to play this market...and investors should be in equities with a relatively long term horizon," he said in an interview to CNBC TV18.
The investor also said that central banks across the globe are aggressively tightening monetary policies and hiking interest rates to bring inflation under control. However, he believes that there is no determined timeline on when global inflation will come down amid surging commodity prices worldwide.
"I don't think anybody knows how much of monetary (policy) tightening or rate hikes is actually required to bring down inflation...but at the same time, you know, what the Fed and the central banks are trying to achieve is to bring the demand down to the level of the current supply curve so that we bring prices in control," he added.
Last week, the US Federal Reserve hiked interest rates by 75 basis points (bps) to 3-3.25 percent, which was the third straight 75 bps hike by the world's largest central bank. Fed Chair Jerome Powell also reiterated the central bank's commitment to tame surging inflation.
Talking about ICICI Bank, Gubbi said there has been a significant change in the risk appetite of the bank and the operating and technology sides of the bank remain strong.
"Fixing the asset side and the prudence of lending culture means that the bank is set nicely for the next decade or so in terms of market share gain," he further said.
Separately, the investor mentioned that ICICI Lombard, one of the oldest private sector general insurers in the country, has all the capabilities in terms of being a beneficiary of the consolidation that the general insurance sector is witnessing.