CA Rudramurthy BV, MD, Vachana Investments highlighted the continued pressure from foreign institutional investors (FIIs). “See, if you look at the Nifty and the Bank Nifty which have been doing relatively well compared to the mid and small cap or the broader market, you have seen a clear correction in both of them as FII sales have increased. In fact, FIIs, if you look at the numbers, they have sold more than $45,000 crore in the last one month period alone.” He added that major factors, including the rupee hitting all-time lows against the dollar and Brent crude reaching $100 per barrel, added to the pressure on the market. He said: “Because of the closure of the Strait of Hormuz, it has been very volatile in terms of Brent crude oil prices and it will definitely affect a country like India, even though the war is between Iran, Israel and the US.”
Rudramurthy described the market as an “oversold” environment, cautioning investors against indiscriminate buying. “All the supports have been broken, and now the next support of the market is close to 23,200 for a short period of time. Once you break this, a move to 22,000 can finally happen in Nifty. Investors who feel that this is a good opportunity to buy for long term, don’t miss it once and then buy everything at this level. Just to make money, it is a good investment.”
He emphasized the importance of selective investment in the current environment. “You have to have a very specific sector and stock in this market. On the buy side, where you have relative strength, it would be pharmaceuticals. You also look at some of the public sector companies where you have valuations, and finally, the metals that are just starting to correct. If you get a little more dip, it presents a good buying opportunity for someone who’s been looking for one to two years.” Rudramurthy advised caution in sectors showing persistent weakness. “The downside in the market is going to be bearish with banks, IT continuing to bear down for a long time, and even autos and real estate very weak. I would avoid IT, autos, private banks and real estate for the short term.”
On stock specific recommendations, Rothermurthy shared a mix of buy and sell calls. He said, “PG Electroplast has broken all major supports, and a lot of open interest has been built up today. The stock is on the downside. Early targets for PG Electroplast are around 475. Keep a stop loss of 525, and any rise is a selling opportunity at this very weak counter.” To take chances, he points to pharma. “From pharma, I definitely see a buying opportunity, and that is Aurobindo Pharma. This stock is a clear breakout above the 1,200-1,250 level. Any decline you get due to overall market weakness will be a buying opportunity. No doubt, even Dr. Reddy’s looks strong, and I look much better than pharma. Aurobindo Pharma for 1,400 target, and one can for this long year. 1,270 to have a loss.
As market participants grapple with heightened uncertainty, experts emphasize patience, selective sector exposure, and surprise investing as key strategies to manage risk in the near term.
