“This sale was necessary,” says Ajay Srivastava of Dimensions Corporate Finance Services

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Mumbai: Market sell-off continues amid weak macros and negative global indices. In fact, the benchmark Nifty 50 index broke through 15,700 levels for the first time since March 8, 2022. Broader indices also slipped, with all sector indices trading with a negative bias. ET Now spoke to market veteran Ajay Srivastava, CEO of Dimensions Corporate Finance Services, about how to navigate this market chaos and volatility. He says: “This sell off was necessary as the Indian market continued to be overly bullish.” According to him, we are now moving towards a situation where we can visualize the bottom.

He believes it is not a good idea to sell now but actually a good opportunity to buy as some sectors have been oversold. He expects the commodities sector to be a winner when the recovery occurs. According to him, the banks offer the best opportunity. Moreover, he calls banks “qualified loot” and foresees a lucrative mega opportunity at this point. However, in his view, small banks are in big trouble given the intense competition in the industry. However, these small banks are only candidates for investment from an M&A point of view and not from a fundamental point of view. He says fundamentally smaller players have no reason to survive.

Market volatility persists, with India’s VIX jumping more than 15% in today’s trading session. While the fall in markets has been supported by buying from domestic investors, the biggest risk to markets right now is the exit of domestic investors, which could be possible if FD rates rise to 8 -9%, which could be a possibility given the growing interest. rate environment in which we currently find ourselves. In summary, Srivastava thinks now is a good time to buy, but one should be aware of near-term uncertainties.

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