After the Indian stock markets finished lower on Monday, with the headline indices Sensex and Nifty closing in red for the fifth consecutive day following the global sell-off in equity markets, ace investor Porinju Veliyath says that there are still a lot of compounders available in the stock market. “The term ‘multi-bagger’ will not be used as frequently as in the past, but we have a large number of beautiful compounders going forward! You can bet really big on the unprecedented improvement in ‘Corporate Governance’ in the listed space! #ChangingIndia,” Porinju Veliyath twitter.
Amid rising volatility in the stock market, top voices say that poor quality stocks are likely to see a steeper correction. “This time the correction will be more in kachra, non-quality stocks. The large caps and quality mid caps, while they can correct, provide a great opportunity to enter,” Nilesh Shah of Kotak Mutual Fund told in an interview to ET Now.
Interestingly, some fund managers say that mid cap stocks are likely to do better than large cap stocks, in view of the earnings recovery. “With the recent correction the overall valuations in the market have become quite reasonable. Also, the Q3 result season so far has been quite encouraging which further makes the market more reasonable. We continue to believe that midcap will be able to outperform large cap in the long run,” Alok Singh, CIO, BOI-AXA Investment Managers told FE Online.
The 30-share Sensex fell as much 309.59 points or 0.88% to end at 34,757.16 and NSE Nifty shed 94.05 points or 0.87% to settle at 10,666.55. “A strong bout of selling on Friday was followed by a huge gap down opening in our market on the back of extremely weak global cues,” Angel Broking said.
“However, the intraday activity was not as bad as one would have afraid of. During the day, Nifty respected 10,600 and went on to recover a bit throughout the remaining part with a slightly higher volatility. Eventually, the index managed to trim some portion of early morning losses to conclude below the 10,700 mark. Traders are advised not to get carried away by this strong bounce back the ‘Midcap’ index witnessed today. In fact, one should stay light and avoid making any kind of bottom fishing till the definite signals emerge, it,” it added.