After a strong rally witnessed earlier in the month of September, the market lost steam soon after it hit a record high of 10,178 but the recent correction should be used by investors to tap into quality stocks, says S Krishna Kumar in an exclusive interview with CNBC-TV18.
Weakening macro fundamentals have come out to be a major concern for market participants which will be keenly watched in the next few months as well. But, all these are short-term headwinds and any correction should be used to buy quality stocks.
“Considering the uncertainty around macro data on GST collections and on SME segment, markets will weight for some more clarity to emerge in terms of policy measures from corporates. Our belief is that GST collections were quite robust and fiscal wise we should be comfortable. The borrowing program was more or less the same,” said Kumar, CIO Equity, Sundaram Mutual Fund.
He further added that we advise investors to participate and get invested using this correction and consolidation in the markets.Commenting on the sectors, he said broader themes are getting stronger such as consumer discretionary, lifestyle, automobile, retail, branded apparel and retail credit. The rural economy is also picking up.