Kochi: The recent slide in stocks in India presents a buying opportunity for investors. At a time when Indian markets are following global cues downhill, shareholders could hold on to the performing stocks in their portfolios and scout for new stocks in the buyer’s market, experts said.
“This is a normal correction,” said K Dileep, general manager of Geojit Financial Services. “The effect of new regulations on stocks in the Union budget was evident in the stock markets. The setback in the US markets also affected the Indian markets. US markets were dealt with the biggest blow since 2011. However, these factors just triggered a correction which was anticipated by almost everyone,” he added.
Dileep said that fundamental economic indicators were still strong in India, except the high oil prices and the elevated bond yields. “The rise in oil prices is likely to affect inflation and the interest rates in the coming days. That could lead to another slide in the market. We could expect more such minor setbacks in the coming days,” he said.
“The markets could expect interventions from the government and the Reserve Bank of India since the fluctuations are likely to affect currency exchange rates. The Nifty has fallen to 10,300. The index could dip to 9,700. Still the slide could be limited as buyers spot their chance in a falling market. Investors’ interests could prop up the market,” he said.
“Though the market is expected to be bearish, it presents a great buying opportunity for investors,” he added.
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