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market | IST

Market was due for a correction; positive on real estate: Jefferies

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According to Mahesh Nandurkar, India Strategist at Jefferies, the correction in the market is unlikely to be a long-lasting one as the strong economic outlook and the corporate earnings growth will bring in support sooner rather than later.

The Indian market has been due for a correction for some time now, said Mahesh Nandurkar, India Strategist at Jefferies. The market nosedived on Monday with the Sensex trading 1207 points lower at 58,428 and the Nifty trading at 17,396.50, down 368 points, at 2:11 PM.
According to Nandurkar, the correction in the market is unlikely to be a long-lasting one as the strong economic outlook and the corporate earnings growth will bring in support sooner rather than later.
“I would consider this correction as a healthy correction in my view,” Nandurkar said in an interview with CNBC-TV18
“My sense is that this sideways movement or the correction is unlikely to be a long-lasting one. The current economic situation is very similar to what we saw in 2004-2005, which was the beginning of an economic supercycle,” he said.
He believes that there is a lot of money to be made in the real estate sector.
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“I would reiterate our positive view on real estate sector, the housing related plays. There are other ways of playing the same story as well by way of mortgage players – couple of largecap names have been underperforming in the mortgage space as well. So that looks like a good option,” he said.
According to him, banks in general have lagged primarily due to the lack of foreign buying.
“As the market valuations correct whether by way of some sideways movement or some kind of a correction as we are seeing right now, the valuation comfort from the foreign investors will also improve and banks will see some support,” he stated.
When asked how he is approaching new initial public offerings (IPOs), Nandurkar replied, “We have seen some corrections happening in the IPO markets as well. I would say that many of these things are quite healthy.”
For the full interview, watch the accompanying video.
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