The market today posted its biggest single-day fall in 10 months. Nifty breached 10,000 market to close at 9,964.40 and the 30-share BSE Sensex plunged 447.60 points or 1.38 percent to 31,922.44.
S P Tulsian of sptulsian.com thinks there is no problem as such with the Indian market except overleveraging and would continue to buy fundamentally good stocks like UltraTech Cement, Bajaj Finance, Yes Bank.
According to Dilip Bhat, Joint, MD Prabhudas Lilladher, the corrections so far have been shallow maybe because of the abundant domestic inflow of liquidity. So, it is likely that market will continue to be range bound and Nifty may find it difficult to go beyond 10,300-10,400 levels and could go to levels of 9800-9700, where consolidation would take place. So, Bhat says it remains a buy on dips market but he does not expect serious correction.
Dipan Mehta Member BSE & NSE says this could be a technical correction because the market was getting a bit frothy and needed a reason to correct. However, these things may not impact the corporate profits significantly in the short to medium-term.
In fact investors sitting on the sidelines can use this opportunity to enter the market, says Mehta, adding that there is enough money on the sidelines and so this correction will likely be bought into.
It is also unlikely that there would be significant correction in the small caps or market as whole because there is enough liquidity to support it. Moreover, there are not many assets classes where money can be deployed, says Mehta. However, the correction could be about 5-7 percent from the top but it provides a good opportunity to enter.
Meanwhile, Ashwani Gujral ashwanigujral.com is of the belief that this correction looks very different from the previous ones because there seems to be macro tailwinds and one should not take this correction lightly.
Given the pace with which the market came off, the next support could be 9850, assuming 9950 gives way and then 9700. So, Gujral says buy when there is screaming value, because chances are that this market may not be able to move up based on earnings or good news.
Therefore, long-term investors should start buying in parts and keep averaging because this is still a bull market and at some point averaging will work out and market will be higher than 10,200 at some point, he adds.
For the entire discussion, watch video
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