MUMBAI: The mild correction in the market rally over the last few trading sessions according to experts has given a good opportunity for long-term investors to enter the market.
The markets have corrected close to 3.50 per cent during the last five trading sessions with the Sensex shedding close to 1,000 points as foreign institutional investors are booking profits to compensate for any collateral damages that they have incurred on their crude oil positions.
The fall in the global crude oil prices have also raised concern among global investors about the health of the global economy.“There is nothing wrong with India’s fundamentals. Global investors are booking profits in emerging markets equities to compensate for their losses in crude oil positions. The current fall in the market is a good opportunity for long-term investors to enter the market. Investors should look at staying invested in quality stocks and exit weaker counters,” said Deven Choksey, managing director, K.R.Choksey Securities. According to him, the depreciation in the Indian rupee has also prompted some of the global investors, especially the exchange-traded funds (ETF) to trim their exposure to the Indian markets.
In a highly volatile trading session, the Sensex closed the trading session at 27,602.01, losing 229.09 points or 0.82 per cent on Thursday while the Nifty ended the day at 8,292.90, down 62.75 points or 0.75 per cent. According to the provisional data released by the stock exchanges, foreign portfolio investors (FPI) sold shares worth Rs 808.27 crore. “It’s a buy on dip market. The markets are going to remain bullish at least for another four years. For traders it will be a little risky to time the market. But for investors, every dip in the market is a very good buying opportunity,” said Kishore Ostwal, chairman and managing director, CNI Research.
According to Ambareesh Baliga, market expert, a meaningful correction of about 10-15 per cent would provide a very good opportunity for investors. “A correction was long overdue. For the bull market rally to continue, a meaningful correction is required. What we have seen is a small correction. Since the markets were moving in a range for the past few trading sessions, there is a possibility that the markets could see a strong bounce back. So investors should wait a little longer for a meaningful correction to set in,” he said.
