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In a not so good day for the stock market, BSE Sensex dropped by 1770 points yesterday, a drop of over 2%. This has led to animated discussions on the impact of this steep fall and whether it is a minor drop or a sign of a major correction in the market.
In this context, Cafemutual talked to the stalwarts of the mutual fund industry on how they see yesterday’s stock market correction. Here is what they have to say.
A Balasubramanian, MD & CEO, Aditya Birla Sun Life MF
A combination of global and domestic factors had an impact on the markets yesterday. On the global front, geopolitical tensions between Israel and Iran had a major role to play. This also led to a rise in crude oil prices which added pressure on India. The other factor is the surprise up move in other emerging markets like China. This along with the recent announcement to curb speculation in the derivatives market led to market volatility. However, we continue to remain bullish on the India growth story and any market correction should be looked as a buying opportunity from a long-term point of view.
Neelesh Surana, CIO, Mirae Asset MF
Markets have moved one sided since 2020 so a correction like this is natural. Some consolidation is a healthy sign. The effect of geopolitical events is difficult to predict but I do not see yesterday’s drop as a major correction that would lead to any meaningful change. I think this drop would be good for the SIPs due to rupee cost averaging.
Anupam Tiwari, Equity Head, Groww MF
There is a bit of worry in the market due to the war in the Middle East. The valuations in the Indian markets are also rich which has triggered this correction. In addition, the Chinese market has also started to go up which I feel can drive some FPI flows towards China. However, the fundamentals of the Indian markets are still strong so I don’t see a reason to worry.
