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market | IST

It's a bull market correction; IT, infra, private banks to do well: experts

The Indian equity market fell sharply as rising COVID cases and worries over lockdowns in several cities weighed on investor sentiment. Selling in financials and autos stocks dragged the benchmark indices, Sensex and Nifty near two-week low levels.

The Indian equity market fell sharply as rising COVID cases and worries over lockdowns in several cities weighed on investor sentiment. Selling in financials and autos stocks dragged the benchmark indices, Sensex and Nifty near two-week low levels.
“The market sell-off is a confluence of local factors amid the sudden spike in COVID infections. Though thankfully the mortality rate is still quite low and we do have the vaccination drive been accelerated. So hopefully the negative news won’t last as long as the last COVID infection wave,” said Mihir Vora, Director & CIO of Max Life Insurance.
He noted that there was a consolidation and correction in the global markets given the strength in the dollar, given the rise in the US bond yields.
On portfolio positioning, Vora said, “We still continue to believe that the US recovery will be faster than the Indian recovery because of the size of stimulus they have done, so IT themes will continue to work. The PLI theme will still support and the infra theme should continue to work. In the banking space, private sector banks with good granular portfolios should continue to do okay.”
Jai Bala of cashthechaos.com said, “Autos and the banks will start the correction now but they are all bull market correction, it will look panicking but the market has to go through such froth and that is healthy in the longer term.”
“The energy sector could benefit because I expect Brent to fall somewhere close to mid-40s and maybe even IndiGo could benefit. But it is not a time to be smart and try to choose winners at this point of time, it is better to step aside,” Bala added.
(Disclaimer: The views and investment tips expressed by investment experts on CNBCTV18.com are their own and not that of the website or its management. CNBCTV18.com advises users to check with certified experts before taking any investment decisions.)