Bharti Airtel | Mahindra and Mahindra: Which stocks to buy if the market continues to correct

“I continue to believe that if the markets correct, more financial institutions will continue to lead the decline. This is where the opportunity will come in the form of larger private sector banks,” he says. Sandeep SabhrwalAnalyzer asksandipsabharwal.com.

What are your thoughts on building the market in general? While we are already down an odd 6% from October highs, is there any additional room that you think will dampen the markets?
Markets need to give up some additional gains until they reach a sustainable level where we can find a permanent bottom because even though the current correction has taken place from the top, on a monthly basis, since February, we haven’t even had a month where the market is already down Up to 1% including the current month, if we assume that the markets will close near the current levels at the end of the month.

So this is not a correction. On a few weeks basis, the markets have corrected, but on a monthly basis, there is no correction. So it needs some butter to come out. If you look at what happens to the recently listed IPOs like Paytm shares that experienced a sell-off but were then bought aggressively at low levels and other listed companies that have high valuations and similar concerns and few profitability concerns, it’s still very sustainable. high levels. So the euphoria hasn’t gone out of the market from the retail investor’s perspective. Until that happens, the rest of the market will survive. In the recent past, macro developments have not affected the market much.



Historically, there has been a very high correlation between the rally and the US Dollar Index. The US dollar index rally and emerging market corrections were closely related to each other. Some emerging markets corrected because of this, but India hardly did. Such strong moves in the US dollar usually lead to a big sell-off. The rupee was also quite stable. It didn’t budge at all. This is another risk, and a large amount of outflows for the manufacturing division is balancing due to domestic inflows. If it continues, we may reach a level after a few days or weeks and the markets give up big gains and this will give an opportunity to spread the money.

If we wanted more of a retreat, what would you be tempted to buy?
Some good private sector banks have made a big correction and are giving up a lot of gains. This is where I see an opportunity to buy. I’m not saying buy them now, I still think that if the markets correct, more financial institutions will continue to lead the decline. This is where the opportunity in the form of larger private sector banks will come in.

I am optimistic about some companies like Mahindra & Mahindra. As per the markets correction, if it retraces back to around Rs 850 level, it will be a good investment opportunity for investors to buy in the next couple of years.

In telecom it is one of our biggest holdings but it does not give up any of its gains and may not correct much, given the developments in the industry. An investor should watch for a bad day and continue to dedicate it to it. Then there’s the whole capital good, the infrastructure story which I think is getting stronger and the valuations are still reasonable. This is another part that investors can pay attention to.

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