Has the market finally bottomed? Time to pounce?

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Subscribe to enjoy similar stories. India's stock market experienced dramatic swings in 2024. After reaching record highs, the Nifty 50 plunged nearly 11% from its September peak due to persistent selling by foreign portfolio investors (FPIs) in the following two months.

The selling was driven by increased allocations to China and concerns surrounding muted earnings growth during the second quarter. A weakening rupee further dampened market sentiment. The market is currently showing some signs of recovery, rebounding roughly 4% from its trough.

Mint explores whether this correction has presented attractive buying opportunities for some investors by alleviating concerns of an overvalued market. An analysis of all NSE-listed stocks reveals that only 1% are currently trading at their 52-week high, indicating widespread declines from peak values. Nearly half are down more than 25% from their 52-week highs, while another one-third have declined between 10% and 25%.

“While the Indian stock market's current correction raises valid concerns about valuations and future performance, it also presents potential buying opportunities for discerning investors," said Atul Parakh, CEO of online investment and trading firm Bigul. “A careful analysis of individual stocks and sectors is essential, alongside an understanding of broader market conditions. Investors should balance their strategies between seizing opportunities presented by lower valuations while remaining vigilant about potential further declines in the near term." Also read: Weak rupee dented dollar returns for already wary foreign investors in 2024 Vivek Sharma, investment head at Estee Advisors, added, “I always advise investors to avoid trying to time their entry or exit