If you have a Rs 100 surplus and are targeting to invest that in next two-three months, out of that Rs 20-25 is certainly worth investing at current level in the market, says Kunj Bansal, CIO, Karvy Capital.
What are the key concerns that you would like to flag off given the kind of selling pressure we have been witnessing the last couple of sessions?
There are two things: one, I do not think there necessarily has to be concerns. We were all enjoying the ride. In fact, people missed the ride last one year. February 15, 2021 was the peak of the market when Nifty was at 15,300 which was more than 100% return from March 2020. So there doesn’t need to be any concern.
Two, from February 15 till date, for about one and a half month or less, markets initially were range bound and now from the last two days, these have taken a sharp beating. Some of the corrections are clearly the expected rise in the interest rates both in India as well as globally. More specifically for India, the rise in the crude oil is always a concern macro economically as well as micro economically. On the liquidity side, the FIIs were almost one-way daily buyers in November, December and January. But that is no longer the case. We have seen FIIs turning negative. The growth numbers for March and this quarter are already priced in.
These are the reasons why we are seeing corrections in the market. It is a very healthy development and it gives opportunity for fresh money to come in.
Are you tempted to buy this fall? Are you comfortable with the valuations now or would you wait for them to cool off further?
Frankly, we do not have any surplus cash or too much of inflow right now for me to buy, but if I had it, I would at least buy partially. If you have a Rs 100 surplus and are targeting to invest that in next two-three months, out of that Rs 20-25 is certainly worth investing at current level in the market.