Don’t obsess about corrections; see if you are positioned right to buy: Nirav Sheth

economictimes.indiatimes.com:

Nirav Sheth, CEO-Institutional Equities, Emkay Global Financial Services, says “if we have a $4 trillion economy now, our ability to absorb shocks in the present macroeconomic parameters is better. If the stocks do not react when the oil is at $95, maybe they react when it is $110. There are other limiting factors as well. Increasing oil prices also tend to act as higher interest rates and a sort of tax on the consumers. This has happened all the time. You will never ever have everything falling in line all the time, it does not happen.”

Do you think that this time the market will oblige with the much anticipated and expected correction of a meaningful nature?
We need to define what is meaningful. If you are looking at a drawback of which is more than 10% or something thereabouts, it’s unlikely. Do you have normal corrections along the way which are very difficult to predict? Can it happen? Of course, the trigger most likely could be obviously around the surge in Brent oil prices and that has implications and more so for India. The key question is are you positioning yourself to buy into the corrections? Is it a buy-on-dip story or a sell-on-rise story? There the conviction is fairly clear. You do not want to miss the wood for the trees. When you look at the next several years, this is a long journey. There is no point in trying to pre-empt 2%, 3%, 4%, 5% corrections and getting obsessed with it.

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Fair point. You are very right about it. Tell us about the areas you are