Increasing allocation into stocks that offer value at these levels could be a good strategy for investors, according to S Krishna Kumar, CIO, Equity, Sundaram Mutual Fund. However, he points out there could be some sectoral churns in about six months.
The recently-concluded earnings season saw some disruption in results of major companies on the back of roll out of GST, among other things. The consumption theme, in particular, suffered due to the new tax legislation.
Kumar said there were expectations of consumer staples and discretionary bearing an impact. However, as the economy grows, the sector could see a recovery.
Midcaps and smallcaps were battered last week as traders unwinded long positions. SEBI ban on shell companies and geopolitical tensions also added to the carnage.