Ruchit Thakur, Market Analyst, VT Markets advises investors to take a cautious approach in the market, rather than making aggressive lump-sum investments during the initial sell-off.
“While it makes sense to selectively accumulate high-quality companies as valuations turn favorable, maintaining adequate liquidity for ongoing volatility is crucial. A sustained market recovery will depend primarily on crude prices stabilizing or cooling off, alongside a reduction in geopolitical tensions,” said Thakur.
During an oil-driven correction, he focuses on defensive and relatively less crude-sensitive sectors such as pharmaceuticals, healthcare, utilities, select financials and IT exporters.
“Stocks such as Sun Pharmaceutical Industries, Dr Reddy’s Laboratories, HCL Technologies, Infosys, HDFC Bank and NTPC could be considered gradually, subject to valuation. Pharma and defensive sectors may provide better resilience if volatility remains elevated,” Thakur said.
Within energy, he believes ONGC and Oil India are relatively better positioned because higher crude prices can improve upstream realisations; both gained even as the broader market declined today.
“The strategy should be to stagger purchases rather than trying to catch the exact bottom and prioritise balance sheet strength and earnings visibility,” he added.
