The deep cuts seen in the Indian equity market is a spillover effect seen on the back of negativity on global markets and expectations of a slowdown in China, Japan and Europe, says Dhananjay Sinha, Head - Institutional Research, Emkay Global Financial Services.
Speaking to CNBC-TV18 after the Nifty breached the psychological 8100 mark on the downside, Sinha says the market has already run up a lot.
“It is trading 17 times one year forward. This would be appropriate if the GDP would be about 9 percent or something. But that’s not the case and the market had clearly lost its sense of proportions to be trading so high,” adds Sinha.
CK Narayan of Growth Avenues says global pressure have lead to a selloff in emerging market (EMs).
“But its not like there’s too much pressure to venture in the market now. You can buy stocks that are resilient to the fall. Kotak Mahindra Bank would be a good buy now,” he advises.
Prakash Diwan of Altamount Capital says the market, despite its deep red hue right now, holds enough value.
“There is enough potential to buy in this market. Also I expect a significant bounceback as soon as any good news comes in the market,” he explains.
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