Stock markets fell for the 10th consecutive day on March 4. Nifty 50 has crashed more than 15 percent from its all-time high. This has brought the valuation of Indian markets below historical averages. To understand this market, Moneycontrol spoke to Puneet Sharma, fund manager and CEO of Whitespace Alpha. He was asked several questions about the direction of the stock market and investment opportunities. Sharma said that three sectors will play a major role in the recovery of the market. These include IT, metal and mining. He said that telecom companies will also perform well. Sharma said that there is no hope of much rise in PSU stocks.
Volatility may continue in the short term
He said that due to the current economic and political issues in the world, the market may remain volatile in the short term. The market is expected to reach near the bottom. Right now the stock prices are looking attractive for medium term investment. Investors should have a long term perspective. The market keeps rising and falling in the short term. In the long term, a portfolio prepared with good research and focus on diversification can give desired returns to the investors.
Global development will have an impact on India
Regarding the impact of global development on India, Sharma said that for some time now, there has been a lot of talk about tariffs and trade wars. Global development will have an impact on Indian markets. This impact is going to be felt at a time when the performance of Indian companies has not been good in terms of growth and profit for the last two quarters. The recent decline has had a greater impact on the stocks of government companies. In such a situation, IT companies, metals, mining and telecom companies can play a big role in the recovery of the market.
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Investors may show interest in private banks
He said that investors may also show interest in private banks. This can be seen when the market stabilizes. As far as consumer goods companies are concerned, their revenue may grow from the next financial year. However, there will be a difference in the profit-making ability of companies from different sectors. The market started declining at the end of September 2024, which is continuing till now.
