BackShould retail investors buy into the carnage on Dalal Street?
The BSE benchmark Sensex tanked over 1,000 points & Nifty below 17,000-level in opening deals on Tuesday
PremiumGlobal as well as Indian equity markets have been quite volatile in the recent past, primarily tracking inflation led interest rate hike outlook by global central banks, geopolitical tensions and rise in crude prices. The BSE benchmark Sensex tanked over 1,000 points and the NSE Nifty cracked below the key 17,000-level in opening deals on Tuesday amid escalations in Russia-Ukraine crisis.
Analysts see stock markets to further see surge in volatility next month as well on the back of events like geopolitical uncertainty, results of state elections, US Fed meeting, etc.
“The overall trend is bullish but we may have high volatility over the next month therefore short-term traders should remain light while long-term investors should look at this correction as a buying opportunity. We are very bullish on capital goods, infrastructure, real estate, banking, consumer goods, and auto ancillaries space therefore we advise investors to look for buying opportunities in these areas," said Parth Nyati, Founder, Tradingo.
Global markets were under pressure as Russian President Vladimir Putin ordered the deployment of troops to two breakaway regions in eastern Ukraine after recognising them as independent on Monday, accelerating a crisis the West fears could unleash a major war.
"Globally stock markets have turned weak. Buying opportunities may emerge in this correction. But investors need not rush-in to buy. The situation is fluid. FIIs are likely to continue selling. This will continue to depress the prices of some high quality financials. Nibbling in this segment can be considered," said VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
Other macroeconomic indicators like GST collection, e-way bill generation, advance tax collection, etc, also point to better-than-expected economic rebound, as per analysts. With growth capex on the anvil by the public and private sector, ICICI Securities expects a broad based economic recovery, going forward.
"We believe that the present market volatility offers an opportunity to build long term portfolio of quality companies, which have lean b/s, are capital efficient & have growth longevity," said Pankaj Pandey, Research Analyst at ICICI Securities.
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