INSUBCONTINENT EXCLUSIVE:
NEW DELHI: It was an action-packed week for financial markets across the globe
Fear of coronavirus and its impact on the global economy haunted policymakers and investors alike and prompted the US Federal Reserve to cut
But the action did not leave market participants elated.
Closer home, as the YES Bank saga unfolded, it did not leave just its depositors
but also shareholders in a fix
The bank stock plunged 85 per cent on Friday alone to trade close to Rs 5
Other bank stocks also witnessed substantial declines.
Demand for safe haven assets drove gold prices to new highs while bond yields crashed
The rupee also witnessed massive beating during the week.
Domestic equity benchmarks Sensex and Nifty slipped into the correction zone,
having fallen over 10 per cent from recent highs.
Market mavens believe the recent correction offers is an opportunity to pick stocks, as
valuations on most counters have corrected in the recent past.
Shyam Sekhar, Co-founder of iThought, on Friday tweeted that the market crash
witnessed during the day could be used to pick up stocks that one always wanted to buy.
Gautam Shah, Founder of Goldilocks Premium Research,
said in the light of the recent falls in US and Indian stock markets, sentiment is as bad in the market as it can get and it is now time for
He said real bulls love despair when everything falls for no reason.
Samir Arora of Helios Capital said the tennis analogy to describe the
gloom and despair and how one can protect a portfolio
He said diversification is key.
Contra Call! Smallcap czar Porinju Veliyath says largecaps are still expensive
He said shares of Apple, Microsoft, Facebook and Google are cheaper than some of the Indian largecaps.
Amid the impact of coronavirus on the
domestic economy, calls for an RBI rate cut are getting louder than ever
tweet, he went on to say that RBI Governor Shaktikanta Das must not talk in jargon and inaction will not bring the economy on track.
Andrew
Holland, CEO of Avendus Capital, expects a 50 bps rate cut by RBI at the next policy review.
Meanwhile, value investor Safir Anand believes
the US Fed rate cut would mean more FII flows into India
He, however, warned that not all bets pay off.
Sekhar said naive are those investors who believe that any troubling corporate situation can
