MUMBAI: The market may have tanked since the beginning of the year, but, according to fund managers and broking houses who responded to the ET Poll, this is good news for investors who had missed out on the rally last year.
According to these brokers, eleven to be precise, contacted by ET, the sharp fall in the market could be a good opportunity for buying shares in the current market. Most of the fund managers, who responded to the poll, advise investors to put money in systematic investment plans ( SIPs )), which are generally considered the safest investment option for long-term investors.
“The mantra should be to nibble into the stocks which are fundamentally attractive and take advantage of any further fall due to technical factors or otherwise, to buy more,” said Karvy Stock Broking vice-president Ambareesh Baliga. A systematic investment plan is best suited in the current scenario, according to him.
Most of the participants feel that investors can start buying at current levels with many fundamentally good front-run and mid-cap stocks now available cheaper than their high values recorded in past year’s bull run. They advise investors to take sector-specific approach, with IT, banking, pharma and capital goods emerging as favourite bets. A few of them feel valuations of the companies in sectors, like FMCG, oil and gas and infrastructure, also look tempting at the current levels.
Among specific stocks, TCS, L&T and Ranbaxy Labsare the stocks favoured by most of the broker participants. Fund manager participants, however, refrained themselves from making stock-specific recommendations as part of their policy. The participants unanimously are of the view that the government should take strong measures to come out of the current adverse situation it has embroiled itself into amid unrelenting inflation, rising interest rates and serious corruption allegations and scams involving key ministers.
While they are concerned how the government is likely to deal with burning issues like soaring inflation in the country, they expect the government to take key policy initiatives to push growth in the country.
Globally, a correction in oil prices could also provide much-needed trigger to the market, they feel.