Even as the domestic benchmark indices Sensex and Nifty continue to nosedive, ace investor Porinju Veliyath says that he’s really happy with the correction. Notably, the S&P BSE Sensex shed 1,274 points on Tuesday following the global sell-off.
Even as the domestic benchmark indices Sensex and Nifty continue to nosedive, ace investor Porinju Veliyath says that he’s really happy with the correction. Notably, the S&P BSE Sensex shed 1,274 points on Tuesday following the global sell-off, on the back of concerns of rising inflation in the United States. Over the course of three days, BSE Sensex has tumbled about 2,400 points while NSE Nifty has shed about 740 points for the same period under review. However, the ace investor seems to be unperturbed by the vicious selloff.
“This is a fantastic opportunity for Indians to buy Indian equities. I am really happy about what is going on in the market. Since the end of December, we were feeling some kind of discomfort at valuations, at the speed at which stocks had been going up, especially midcaps and smallcaps,” Porinju Veliyath told ET Now.
In the same interview, Porinju Veliyath said that the correction has come at an opportune moment, and the concerns regarding overvaluation in select quality midcaps and smallcaps seem to get ironed out. There were some excesses. In this correction – maybe it is a deep correction in a few days time -the midcaps and smallcaps, especially the ones which had gone up too much have corrected sharply. I feel happy and comfortable about this,” he told the channel.
The smallcap czar explained that it is a very selective market at present. “I just found ITC and something like Inox Leisure are today much better than the pre-Budget day,” he said adding that stocks like HCL, Infosys are all flat.
Reiterating his bullishness on Indian economy, he said, “Yes, the bull market will continue for another 5-10, maybe 15-20 years. India’s bull market, which is related to economic growth, is going to sustain. That is the big picture about India. When the bear market comes, people forget about the potential of the Indian economy, which can move from $2.5 trillion to three, four and five trillion.” while markets expert attribute the plunge in factors to the broader global stock market correction, Porinju Veliyath says that investors need not worry about the global markets. “Some of the negatives in the US have no relevance to Indian equity investors,” he pointed out.