Buy the dip or sell the bounce? Here’s what experts advise
KV Prasad Jun 13, 2022, 06:35 AM IST (Published)
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Summary
Indian equity benchmarks made a comeback on Tuesday helped by an across-the-board recovery following losses that stretched to four sessions in a row. Here’s what market experts make of the movement of indices
Indian equity benchmarks Sensex and Nifty50 started Tuesday’s session on a negative note tracking weakness across most global markets but made a comeback in the afternoon, helped by an across-the-board recovery.
Broader markets also bounced back sharply, giving the bulls a sigh of relief.
Here’s what veterans have to say about the market
Shankar Sharma, vice-chairman and joint managing director of First Global
The market veteran told CNBC-TV18 that the market has to take a breather and there is still a long way to go before one should start to get seriously worried. According to him, what happened in the last few sessions was nothing more than a small correction.
“We have had a vertical rally in the last 18 odd months and where do we go from here? The short answer to that is that we still have a long way to go before we should start getting seriously worried,” Sharma said.
Steve Brice, Chief Information Officer at Standard Chartered Wealth Management
He believes this is the buying on dips environment in the market.
“Usually when you get to November through April, we see significant gains for global equities, so seasonally this is the strongest period of the year. We have been in an unprecedented environment for two years and seasonality hasn’t worked that well but overall we should continue to see volatility pick up but ultimately we do believe it is a buying on dips environment as we go into the end of the year,” he said.
Within neutral allocation to Asia, he would be overweight India. He said, “We are neutral Asia as a whole. We still believe that US and Europe are going to outperform. Within Asia we still have preference for India. We believe growth dynamics there and also with COVID-19 vaccinations picking up etc – overall story is still pretty positive for investors.”
Also Read: Vedanta a risky bet if commodity cycle turns jittery, Hindalco better placed: Go India Advisors
Dipan Mehta, Director, Elixir Equities
Mehta is positive on Vedanta. He believes the company is a good trading play at this point of time and the current correction may be a good opportunity.
“By and large, I am positive on Vedanta and a correction like this may be a good opportunity. But one should keep in mind that these are great trading stocks, you can hold them for a few months also, but not part of a core holding,” he said.
Harish Krishnan, EVP and Senior Fund Manager-Equities of Kotak AMC
He said equity is a long term asset. “I would imagine that the kind of corrections (market is currently seeing) made at the stock level or at the index level, do provide an opportunity for a lot of investors who are underweight equities as an asset class, to participate into the asset class,” he said.
Also Read: New age businesses: ‘Buy first, then test’ model should change, says Axis AMC
He said the next 18 to 24 months are going to be a lot more polarized. He said it is unlikely to be what was seen in the last 18 months, wherein all stocks did well.
“It is going to be somewhat of a stock specific kind of approach and therefore one will have to take very calculated bets going ahead to participate in the next 18-24 months,” he explained.
Sushil Kedia Founder of Kedianomics
Kedia remained bullish on telecom stock. He said “they did not come down at all in this market correction. So we will continue to ride them with trailing stops,” he said.
Mehraboon J Irani of Gini Gems Consultants
The market expert too remained positive on the country’s telecom story. “The question is whether you buy Bharti Airtel as a trading bet. The answer is: Certainly not. But if one has it in the portfolio, and one wants a proxy for the telecom sector, I think certainly one will continue to hold on to it. Will the stock be higher than where it is right now or the next one? Yes. They have taken care of the liquidity problem with the recent rights issue.”
He said the tariff hike was also a welcome move and should definitely help the company as far as the incremental revenue to EBITDA goes.
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