New Delhi, Feb 3 There will be plenty of chances to invest in Indian stocks as market volatility can provide attractive entry points, a leading market expert said on Monday.
However, investors to be selective in stock picking as the current scenario requires a bottom-up approach to identifying strong stocks, according to the veteran investor.
In a media interaction, Kela expressed optimism about buying opportunities amid market fluctuations. Additionally, he cautioned against expecting the same high returns seen over the past few years.
In the first trading session after the Union Budget presentation amid US President Donald Trump’s trade tariffs which are set to come into force on Tuesday, the Sensex dropped by 327.25 points or 0.42 per cent to trade at 77,178 during the intra-day trade.
Similarly, the NSE Nifty slipped 138.05 points or 0.59 per cent to trade at 23,344.1.
Sectors such as metals, mid and small-cap IT & telecom, and real estate faced the biggest losses.
The Nifty 50 index has dropped 11 per cent from its peak in late September. This decline has been influenced by multiple factors including concerns over Donald Trump's trade policies.
Kela, known for his focus on risk-reward analysis, sees more value in large-cap stocks at present.
The Nifty index is currently trading at 18 times its estimated earnings for the next year, which aligns with its long-term average.
"This year, I am leaning more towards large-cap stocks," he said, adding that the consumer stocks, especially regional brands in the staples segment, are gaining market share from bigger companies.
On the public sector undertakings (PSUs), Kela recalled his positive outlook on PSU stocks three years ago due to their attractive valuations.
While some PSU banks still offer investment potential, he suggested that investors should have realistic return expectations.
"Be cautious with your gains from the past few years and choose stocks wisely. Market fluctuations will create opportunities to enter at the right price," he added.
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