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What to buy if there is a big correction in the stock market? expert advice

Highlights:

  • On Wednesday, the stock market fell by more than 400 points, indicating a correction.
  • Expert Hemang Jani says that investors should be a little more careful while buying at the time of correction

Just before Diwali, Diwali is being observed in the Indian stock market for the last several days but the market has taken a break in the last two days. The market broke 456 points on Wednesday. Many experts had predicted a fall in the market and it is believed that this correction has been made considering the fall in the last two days. What should investors do if there is a major correction in the market, said Hemang Jani, Equity Strategist and Senior Group VP, MOFSL.

What to do as a buyer when there is a big correction in the market? “There are many companies that are on our radar,” he said. I believe that the investor should be a little cautious before investing in any company. Especially companies with good quarterly numbers where we can see good growth. Like Titan or private sector banks like HDFC and ICICI or auto sector like Maruti. Therefore, if there is a specific correction in the market, the investor can buy into such companies.

“We have seen improvement in IRCTC, IEX, Tata Power and probably other mid-cap companies,” he said on Tuesday. In any bull market there are pockets that are leaders and there is some momentum based movement. We saw a drop in today’s market. So it is normal to go through the corrective phase.

The market cap of IRCTC is Rs 80,000 crore. So we go through this kind of correction. So if there is a correction, the investor should be a little selective in buying. We are not worried about Tata Power. Importantly, renewable energy is being discussed around the world at the moment. So, if there is an improvement of 10-15% then it can be considered as a buy. So I don’t bother with yesterday’s correction.

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