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Indian markets seem to have developed cold feet ahead of the Union Budget 2021 as the equity benchmarks continued to decline for the sixth consecutive session on January 29, the opening day of Parliament's budget session.
In the last six sessions, the Sensex and the Nifty have slipped 7 percent and wiping out Rs 11.6 lakh crore of investors' wealth. Foreign portfolio investors (FPIs) have been selling for the last five sessions and have taken off more than Rs 12,000 crore from the Indian market.
Well-known market voices have shared their thoughts on markets, areas of opportunities and sectors. Here are some of them:
Saurabh Mukherjea, Marcellus Investment (to CNBC-TV18)
Haven't lost much sleep over market correction. Q3FY21 results in India have been positive. We are on the verge of a big economic recovery and earnings growth cycle.
Earnings season in Q4FY21 will look great on a low base. The next three-four quarters will be good for Indian companies due to cost-cutting measures and revenue growth.
Neeraj Chadawar, Head-Quantitative Equity Research, Axis Securities
Investors are advised to stay cautious and sit on 10-15 percent of cash to be deployed at lower levels. The market will provide better entry points in the next couple of weeks as the current set up seems to be a seller's market.
Foreign institutional investors (FIIs) who were consistent buyers in Indian markets for the past three months have turned net sellers in the domestic market. If FIIs continue their selling and DIIs fail to buy the position, we could see further forward pressure in the market.
Prathit Bhobe, Tata AMC
Time and again, the market reminds us that it is a voting machine in the short run and a weighing machine in the long run. The first half of last year was only about the virus, which sent the Sensex quickly down to nearly 25,000 in March and nine months later on hopes of vaccine, earnings and economic revival have brought it to nearly 50,000.
This displays the non-linear nature of markets. While we remain quite constructive on equities, due to the sharp rise there could be corrections through the way and one has to be prepared.
Staggering investments through SIP into equity or investing in a lump sum in balanced advantage fund is advisable.
Amish Shah, India equity strategist at BofA Securities
We are overweight on financials, industrials, materials, telecom, staples, and pharma. Financials, industrials and materials particularly are our biggest overweight positions.
We are underweight on IT, energy, discretionary sectors. IT has reported good earnings in recent results but we think that valuations have already priced that in.
Besides peak valuations, there are no incremental positive triggers. Likely weak dollar or a strong rupee is a headwind as well.
For the discretionary sector, valuations are now at an all-time high and could face risks to earnings downgrades on the back of rising commodity prices.Disclaimer: The above report is compiled from information available on public platforms. Moneycontrol advises users to check with certified experts before taking any investment decisions.