Largecaps and select smallcaps to lead market bounce: Nimesh Chandan
«There will be a higher bounce in companies which are like a coiled spring, which have valuations which are attractive, results which have been good, and outlook is also good,» says Nimesh Chandan, CIO, Bajaj Finserv Asset Management.
Because the last couple of months have been a bit dicey for the markets and we are in the correction territory now for what it is. But from here on, do you expect a lot more sideways move or do you expect that within the next three to six months we will resume sort of that swift bull run?
Nimesh Chandan: So, Robert Shiller once said that corrections in a bull market come like a thief in the night. You cannot really time it. So, obviously, whenever it comes, people get a bit surprised and shocked. And this correction especially was triggered by one set of investors, the foreign investors, selling in a very intense way in say time crunched within one month. It is a record selling within that, so that is what got people a bit worried about this correction compared to any regular correction that comes in.
But because of this correction where a lot of largecap stocks have fallen quite sharply, there are opportunities to pick up good companies at good valuations. So, while I believe that once this selling fades away and looks like it is fading away, the markets will bounce back. But there will be a higher bounce in companies which are like a coiled spring, which have valuations which are attractive, results which have been good, and outlook is also good.
So, this valuation is
