New Delhi, March 31 -- The recent recovery suggests that markets may have found some floor even as risks from global uncertainties and tariff war persist, but investors would do better to stick to large caps amid volatility, according to Niraj Kumar, chief investment officer at Future Generali India Life Insurance.

"The prevalent VUCA (volatility, uncertainty, complexity, ambiguity) environment will continue to pose bouts of volatility," said Kumar.

Still, Kumar believes US President Donald Trump's reciprocal tariffs won't have a lasting impact on Indian trade and markets. He remains "constructive on the markets" in the medium term.

Excerpts from the interview:

Prima facie, the recent recovery in markets from the March 4th low (21,964...