New Delhi, Oct. 2 -- With stock markets going through a difficult phase amid ongoing geopolitical tensions, rising crude oil prices and the 10-year US Treasury yield at multi-year highs, S Naren, executive director and chief investment officer of ICICI Prudential Asset Management Company, shares his market outlook, where he sees opportunities and why his fund house is launching a contrarian fund.

Our view has been that near-term returns could happen if oil prices decline sharply. With oil at $107-108, coupled with high transportation costs, it remains a significant headwind for Indian markets in the near term. If oil prices decline, markets could recover.

Our broader view remains focused on asset allocation, unconstrained investing and ...