Policy may arrest mkt fall, wary of beta stocks: JPMorgan

Bharat Iyer, JPMorgan said the brokerage has been pointing out for some time now that price action in Indian Equities has been worrying. The market has subsequently corrected in absolute terms by over 10 percent & underperformed the peer group meaningfully, he added.

From a fundamental perspective, the medium to long-term appeal of Indian equities remains healthy, given structural factors & a much improved policy environment, Iyer said, adding but in the near term, investors will have to continue to contend with positioning, valuations & a feeble recovery.

According to him, policy support will likely have to play a crucial role in arresting the decline and putting a bottom in place. We remain wary of chasing beta as also rural discretionary consumption plays, he said.