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Sell-off overdone; mkt fall due to currency scene: Baliga

Independent market expert Ambareesh Baliga says it is in fact time for the retail investors to start nibbling in. Buy every dip.

It was a manic Monday for equities with global markets leading the sell-off. Chinese equities (Shanghai Composite) plunged 8.5 percent on the first day of trading this week, its biggest one-day fall since February 2007. The China-induced turmoil led to the Nifty closing at 7809, down around 6 percent, with it touching an intraday low of 7769.40.

Monday’s trading marked the biggest-ever intraday loss in absolute terms for the Nifty as well as the Bank Nifty. The midcap index has lost more than 1000 points for the first time ever.

However, independent market expert Ambareesh Baliga remains unperturbed and says today’s sell-off was a tad overdone. Though it does not meant there won’t be a follow-through tomorrow. According to him, the India story remains unchanged or intact and it is just the currency situation which is at play here. “It is in fact time for the retail investors to start nibbling in. Buy every dip,” he told CNBC-TV18.

Both the Sensex as well as the Nifty are at their lowest levels since October 2014. India volatility index (VIX) zoomed 64 percent, recording its highest ever intra-day percentage gain. About 44 NSE stocks declined to one stock advancing, while 8 BSE stocks declined to one advancing. 

Mayuresh Joshi of Angel Broking too advises investors to get into quality stocks though he cautions that the pain may continue for some more tome. “A 10-15 percent allocation should rightfully go into the markets,” he says.

The market also saw the biggest gainers of this year such as BPCL , Maruti , Lupin , among others, come under selling pressure today. Joshi advises investors to deploy some money (incrementally) into these stocks. He is bullish on private sector banks such as ICICI Bank , YES Bank and Axis Bank .

Baliga says if a stock like Maruti falls another 5 percent, then it is definitely a buying opportunity. So are Tata Motors and Reliance , he adds.

Sudarshan Sukhani of s2analytics.com says once the market stops falling and there is consolidation, buying list of every investor should include a stock like Maruti.


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