A large part of the pain over; start accumulating stocks where numbers have been good: Hemang Jani
Hemang Jani, Independent Market Expert, says at index level, there has been an almost 10% correction, at stock level anywhere from 10% to 25-30%. A large part of that pain is behind us. It is time to start accumulating stocks, particularly the pockets where the numbers have been good, whether it is banks, defence, some of the pharma companies, telecoms, so on and so forth.
We are all heaving a sigh of relief with yesterday’s rebound that we witnessed. What do you make of it? Do you think that the much overdue correction is still eluding us and is yet to come or is this going to be the course of action for the markets a couple of days on the downside and then we will bounce back?
Hemang Jani: We are going through this correction for almost three to four weeks now. Of course, the earning season has been one of the main triggers, which has been a bit disappointing across sectors and within sectors also we are seeing a lot of divergence. But once this US election as an event is out of the way and once we see some clarity emerging, our markets should stabilise because a large part of the correction, which is earnings led has already been priced in because at index level we have seen almost about 10% correction, at stock level anywhere from 10% to 25-30%.
So, a large part of that pain is behind us. It is time to start accumulating stocks, particularly the pockets where the numbers have been good, whether it is banks, whether it is the defence, some of the pharma companies, telecoms, so on and so forth.
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