Sandip Sabharwal, asksandipsabharwal.com, says the first level of buying could be looked at on the largecap side. If Reliance falls 5-7% from current levels, it could be a decent stock to buy for a 15-20% upside over a year's time. If markets correct, typically banks have a higher beta. If they correct more than 10% from current levels, they can be considered. If L&T it falls near Rs 3,200-3,300, then we could have a look at it among the largecaps. These could be the opportunities.
Markets were due for a fall. The selling has come. Could this accelerate further? Is it time to put money to work now?
Sandip Sabharwal: It is too early to put money to work because of the fact that, one, there could be global factors at play and globally markets could correct and that could lead to some sort of fall coming in India also. Secondly, if you look at economic data which has been coming out starting right from the core industrial data, information where core output was actually down last month and some impact was there of heavy rains, etc, which was down.
Then, we have seen the pre-releases by many consumer companies which do not seem to be very encouraging. So, clearly, high food inflation as well as slow growth in disposable income, lack of any fiscal incentives, etc, high taxation has started to have some impact on economic growth. Now, hopefully the festival season sentiments, etc, will be positive and we will see some revival coming through and the RBI might also change its stance.
I think those things could happen and