Market volatility expected to persist until US tariff uncertainty settles: Devender Singhal

«For midcap or smallcap, that could be a different story. But in the largecap space, the valuations have become very attractive. A couple of percentage points more of correction cannot be ruled out,» says Devender Singhal, Kotak Mahindra AMC.

First up on the markets, nothing has been holding up. Since all this while we have been talking about the broader indices, getting into that bear territory, but look at Nifty 50 is down about 15% from those highest points of September 2024. Do you believe that another 5% correction from here on cannot be ruled out or you believe that at the index level we should find some bit of a base building?
Devender Singhal: So, yes, you are right, we have seen around 15% correction in the Nifty. But there has not been a single year in the last 30 years where we have not seen something like this happening. But honestly, it looks like in terms of valuation comfort, we are very near to the bottom or the immediate bottom in terms of where the Nifty or largecaps are concerned.

For midcap or smallcap, that could be a different story. But in the largecap space, the valuations have become very attractive. A couple of percentage points more of correction cannot be ruled out. If you are a serious long-term buyer, then this is the time to start getting back into the market.

But stick with the largecap, but any sector that you wish to flag off other than financials I believe because what we see is that financials as a whole is coming in as a consensus buy. What are your thoughts on that?
Devender