Jyotivardhan Jaipuria, Founder & MD, Valentis Advisors, says he typically tries to buy stocks following the three-U philosophy. He buys the undervalued, under-owned and underperforming stocks. So, for him, the valuation of food valuation and q-comm stocks has been a big constraint as at these valuations, the margin for safety is quite low. So, even though growth will come, there is not that much margin of safety.
What is happening in the market? Can a conclusion be drawn that it is the disappointment on the earnings front that is leading to such a downtick in the markets? Or do you think there are a lot of moving parts that one needs to watch out for?
Jyotivardhan Jaipuria: I guess the starting point was valuation. The valuations have been expensive for some time. A lot of us have been expressing concerns about that. So, when valuations are expensive, you need one trigger. The earnings were a little disappointing, that was one trigger. Also, probably the fact that China did a stimulus and there was a revival in interest in China. So to that extent, people are taking money off the table in some of the other countries that have done well. So, those would be the two points to think about in this correction.
We have seen a 800-point correction. Do you expect markets to stabilise anytime soon? If yes, what should be the key sectors to keep an eye out for if there is a recovery from here on?
Jyotivardhan Jaipuria: If we think about the market and the correction, it has not been that major. It is not anything abnormal