Sridhar Sivaram, investment director at Enam Holdings, spoke to CNBC-TV18 about the selloff in domestic stocks and trading cues for investors.
"One cannot tell if it is a bear market or bull market correction but the opportunity right now is very interesting. There are many companies with good cash flows, good earnings potentials. Moreover, the prices have corrected significantly. So one can look at staggered purchase over 1-2 month with a potential of making good returns over next 12-18 months despite election uncertainties, " said Sivaram
“If you ignore the election noise there is money to be made,” he said.
Talking about the impact of global macros like higher interest rates, higher crude prices etc on emerging markets, Sivaram said, "In overall scheme of things EMs are in a tough spot but they have been similar situation earlier."
With regards to the RBI monetary policy, Sivaram said, "25 basis points hike would be in-line with expectations. The mandate of RBI is to manage inflation within the band."
Talking about the correction in oil market companies and government’s decision on excise duty cut, he said," One need not make too much out of the correction in these stocks because it is not a large part of the market and they are smaller in terms of market cap as well. It will however have a sentimental impact."
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