The Indian stock markets are underway a sharp correction these days after breaching some major milestones this year. The key equity indices — Sensex and Nifty — are on a losing spree since last Friday on account of heavy sell-off in blue-chip stocks following the withdrawal of foreign institutional investors. Sensex has lost over 1,141 points from Thursday’s close, the broader Nifty 50 is hovering around 9,700, a level last seen in early August. This major slump has not prompted the leading domestic research and brokerage firm Motilal Oswal to modify its portfolio.
I will not be making any changes to the portfolio currently, said Raamdeo Agrawal, MD and Co-Founder of Motilal Oswal Financial Services Ltd in an interview with ET Now. “Had been waiting for a correction and it has come, and this was mainly because valuations were rich,” said Raamdeo Agrawal. In coming days there will be more stock-specific movement due to second quarter corporate earnings while at that time market will remain stable, Raamdeo Agrawal added.
On the after effect of GST, Raamdeo Agrawal said that unorganised sector felt pain due to GST implementation while the domestic sales of organised players stood stable even after the nationwide tax reform. While Siddharth Bothra, Sr Vice President, Fund Manager, Motilal Oswal AMC said he will continue to be bullish on the housing finance companies and looking to promote long-term investing in India.
Meanwhile recently, the global investment bank and brokerage firm Morgan Stanley has said Sensex will hit 1,30,000 points in a decade from now in the bull case scenario and it also expects India to go on to become the third-largest economy.
Sensex and Nifty finally closed in green snapping the four consecutive days of heavy sell-off on Thursday. BSE Sensex added 182 points to hit the day’s high of 31,340.91 points before closing up 123 points at 31,282.48 points. NSE Nifty gained 54 points to mark the day’s high of 9,789.2 points before finishing 33 points higher at 9,769 points.
Raamdeo Agrawal, MD & Co-Founder, MOFSL. (Image: Reuters)
