Prashant Jain, Cio of 3P Investment Managers, discussing market direction and budget expectations Said that this correction in the market was expected for a long time. Keeping this in mind, investors were also being alerted for the last 6 months. The valuations of small and mid -cap had become very expensive and they were not sustainable in any way. The valuation in the IPO market was also very high. The IPO also became a bubble in the market. After such an expensive valuation, the market had to be correct at some time. At this time, this correction is going on.
At this time, investors should keep the previous high of stocks from the brain and remain in the right validity shares with the valuation of stock according to today’s realities. Apart from this, keep your portfolio well diversified while not investing in two or four shares. Large cap should be 60-70 percent in the portfolio of any long-term investor.
He further said that RBI has taken good steps to increase cash in the system. But this will be especially beneficial for banks. It will not have any effect on the rest of the market. We should not have any expectation from the budget that will bring any special improvement in the market. The market should not link the market.
Talking about the selling of FII, Prashant Jain said that whenever the dollar index is strong, foreign funds of emerging markets like India are withdrawn. This withdrawal lasts from a few weeks to a few months. We should not panic with the selling of FII. FII selling can only put pressure on good shares for some time. We should see this selling of FII as a good opportunity.
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At this time, shopping opportunities can be found in good companies getting cheap Nifty. Large cap shares will be the fastest at the stopping FII selling. Largecap shares may soon become a bottom. Their risk reward is good. There are good investment opportunities in big banks. Prashant is advised to sell in mid and smallcap. He also says that the US tariff will not have any significant impact on India.
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