Market veteran Atul Suri on Tuesday said the time is ripe to buy stock as, even though the indices fell 10%, the best-performing stocks took a 20-25% hit.
"I think it is a good correction for investors. Index has corrected 10 percent but some very good stocks have corrected by 20-25 percent. So I think it is a great opportunity to buy," said Suri, speaking to CNBC-TV18.
He said the markets’ performance in India was part of a global shift and that he is not bearish. “The current correction in markets is not just in India, it is global in nature. The markets were correcting and the Omicron threat pushed markets lower. Indian markets have had a 10 percent correction and it seems like we are making a higher bottom on the short timeframe. So all in all I am not bearish," said Suri.
Suri also said banks are likely to see a short covering rally in the near term.
“The world is shifting away from risk-off mode to risk-on. Today also, it is banks which are going to see lot of short-covering rally. You will find metal stocks that are doing well and the money is a little sceptical of things like IT and pharma. So things are moving to a risk-on phase," said Suri.
While stating that margins are getting stretched due to commodity inflation, Suri said a 10-12% correction would be healthy for the markets.
"The correction has been pretty sharp and unless something out of the book happens, we can pull back and get towards previous highs. So these 10-12 percent corrections are very good self-correcting mechanisms," added Suri.
Suri also said the market, at present, is greatly oversold and added that we are unlikely to see a one-sided runaway market that we saw in the past few months. “After the correction, markets have now got extremely oversold and that I think is very positive. Optically, index is off by 10 percent but the best performing stocks are off by 20-25 percent," said Suri, adding that the tightening of liquidity is very important and that bond yields may rise.