We are overall constructive on the market, but in the short term we see challenges because of liquidity and FIIs pulling out money from the markets. The market should start picking up in the second half of the year. The company commentary in the earnings suggest that the weakness that we are witnessing can be short term in nature. The market is factoring in the short term challenges.

From a medium to long term perspective there are opportunities. There is value emerging across the board whether it is midcaps or whether it is largecap stocks. We continue to like IT. We do not believe rupee to appreciate too much from the current level.

We also see value emerging in the auto space where stocks like Hero Moto is looking attractive from current levels. We have started to see value emerging in the banking sector. We see lot of value in the frontline names like HDFC Bank and ICICI Bank.

Stay invested in quality stocks, focused on earnings visibility, said Naveen Kulkarni, Head of Research, Reliance Securities.