The markets have had a tumultuous last couple of days with crucial levels being broken on the downside. Speaking to CNBC-TV18, Haresh Shivdasani, managing director and head of equities at HSBC said the key concern for investors right now is near-term headwinds like inflation and interest rates. “We are perhaps somewhere in mid-cycle and typically these are times of caution,” he informed. He said the mood right now is cautiously optimistic.

Shivdasani said his year-end Sensex target is at 21,000. “Indian market valuations are becoming more attractive,” he said adding, “India is viewed as a long-term growth opportunity.”