Analyst Views: Selloff may offer opportunities
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The panic selling that has gripped the stock market worldwide, including India, could throw up opportunities for investors in the near term, said investment advisors and analysts. While some think the readings are showing signs of the market being oversold, others are of the view that investors could get better value at even lower levels. SANDIP SABHARWAL, FOUNDER, ASKSANDIPSABHARWAL.COM What Next? Stock markets have been stretched for some time, primarily driven by domestic liquidity. Indian stocks are trading at a record premium compared to global emerging markets, and the overall earnings season has been average. In the near term, the unwinding of global carry trades and the shift of liquidity from risky assets to bonds could lead to valuation corrections across the board. What to Do? Large-cap stocks could see corrections of around 10%, while midcaps might correct 12-15% before the value starts to emerge. Investors should be patient...