Indian stock markets were in a freefall mode last week. Sensex lost nearly 1,500 points in the entire week and Nifty struck a low of 2018. An extremely volatile trading session was witnessed on 6 February, as the India VIX rose 44.23 percent in the intraday trades to hit a 52-week high of 23.1575. The global sell-off returned on 8 February once again causing a rout. Considering such a volatile scenario in the bourses, domestic investors are getting jittery over how to park their investments in the markets going ahead. “Volatility is the best friend of a long term investor. Investors should remain invested for a long term. It’s the best time to buy good stocks, and the stocks one always wanted to buy but couldn’t. Saying this, one should properly study the performance of a company before buying its stocks,” fund manager Viraj Mehta said. The investors are advised to remain invested in the equities for a long term, Viraj Mehta, Head-PMS & Fund Manager, Equirus Securities told FE Online while sharing his market outlook.
Retail and Agri stocks offer good pickings
“We are bullish on India’s retail story. We expect retail stocks to do well in the long term. Even the agro-chemicals offer a good bet,” Viraj Mehta said. However, the fund manager doesn’t appear much enthused by the pharma and IT stocks. “IT and pharma stocks may have performed well lately, we are not much bullish on these sectors,” he added.
LTCG affected markets
Sharing his views on the impact of reintroduction of long term capital gains (LTCG) tax on stock markets, he said that this tax on equities has actually added to the selling pressure on Sensex, Nifty that was observed in the first week of February this year. “LTCG definitely had an impact on the stock markets. Even though government denies the same, LTCG did have an adverse impact on the stock markets,” he said.