Market fall creates opportunities for investors to get good entry points: Madhusudan Kela

New Delhi (The Uttam Hindu): Leading market expert Madhusudan Kela believes that the current market volatility offers numerous opportunities for investors to find ideal entry points but advises a selective approach when choosing stocks. According to Kela, a bottom-up strategy is essential to identify robust stocks in these conditions.

In a media interaction, Kela expressed confidence about finding good buying opportunities amidst market fluctuations but also cautioned investors not to expect the same high returns seen in recent years. Following the Union Budget presentation and with trade tariffs from US President Donald Trump set to take effect on Tuesday, the Sensex dropped by 327.25 points or 0.42%, trading at 77,178 during intra-day trading.

Similarly, the NSE Nifty fell by 138.05 points or 0.59%, reaching 23,344.1. Sectors like metals, small and mid-cap IT & telecom, and real estate experienced significant losses.

The Nifty 50 index has declined by 11% from its peak in late September with concerns over Trump's trade policies contributing to the drop.

Kela, renowned for his risk-reward analysis approach suggests focusing on large-cap stocks at this stage. Currently the Nifty index is trading at 18 times its estimated earnings for the upcoming year which aligns with its long-term average.

"I am currently favoring large-cap stocks," Kela said, pointing out that consumer stocks especially regional brands in the staples sector, are gaining market share from larger companies.

Reflecting on his positive outlook on PSU stocks three years ago, Kela noted that while some PSU banks still hold potential, investors should temper their expectations for returns.

"Be cautious about your gains from the past few years and choose your stocks carefully. Market fluctuations will provide opportunities to enter at favorable prices," he concluded.