Mr. Sandeep Bagla, CEO TRUST MF :
“The employment data in US has turned particularly weak, sparking off expectations of a recession like scenario in the US. Stock markets which are linked to the US economy more are witnessing sharper correction. While possibility of a US recession is bad for equity market sentiment in general, and will lead to corrections across equities across the global markets, the markets where the domestic economy is stronger can be expected to rebound faster than others. The Indian economy is likely to be more resilient than other smaller economies and hence investors could look to add at market corrections. At the same time, one must realise that the pace of market performance in the last few years has been unreal and is unlikely to sustain going forward. One must only invest if one has suitably long investment horizon to tide over periods of volatility in the interim. Investors with ability to hold for long term should look to invest over the next few weeks of correction in a systematic manner in pockets where valuations are not stretched. This is likely to be a medium term correction, which will provide long term investment opportunity for the patient investor. One must keep return expectation low in the short term, keep investing systemically over the medium term with an eye to reap benefits from the growth over a long period of time.”
Mr. Siddharth Alok,AVP Investments, Multi Ark Wealth-Epsilon Money Group:
“As valuations further rise, these sudden down moves might become more frequent. Equity markets returns are never linear.
The news coming from Japan is not good for equity markets, however, the direct impact on Indian markets remains limited; this can be seen from the overall relative strength that domestic markets are witnessing, while global markets are down 10-20%, Indian markets are hardly down 5% including today from their recent peaks.
Investors should have a check on their overall asset allocation & if their investing horizon is more than 3 years, these dips might be bought.”