Ace investor Shankar Sharma is not worried about the huge sell-off in Indian markets today and sees the correction as a good opportunity to buy into the market. In an interview to ET Now, Shankar Sharma said, “Today’s market movement is just a correction and not a trend reversal.” “Today’s correction is a good buying opportunity,” Sharma said. He expects emerging markets to relatively outperform the developed ones. “The sharp fall in bond yields has fueled India rally…I don’t expect eye-popping returns from large-cap stocks,” he said.
Domestic benchmark index BSE Sensex tanked over 500 points in the trade on Monday and Nifty 50 index slipped below 8,700-mark on account of feeble global cues. The selling comes amidst revived speculation about a possible US rate hike. Investors have also turned cautious ahead of macroeconomic data – IIP for July and inflation data for August – scheduled to be released later in the day.
Moreover, rupee depreciating by 25 paise to 66.93 against the dollar in opening trade at the forex market has also had a bearing on the sentiment. However, just like Shankar Sharma is not worried about the markets, analysts think that the Indian currency will also continue to be stable and strong amidst global headwinds. Sajal Gupta, Head Currencies at Edelweiss Securities. Gupta sees mild depreciation in the Indian rupee going ahead, but no drastic fall. “We don’t see the rupee going beyond levels of 68.50. This is a phase of mild depreciation due to global pressure. There is no cause of worry on the domestic front,” Gupta told FE Online.