"We believe that one should play big in banking & financial services and capital goods & engineering services sectors as they have now come to very reasonable levels and provide compelling investment opportunities. If you look at such 6 sigma events in the past due to technical factors, the market has provided great investment opportunities. This is the right time to invest and one can expect 30-40 per cent returns, may be more, in next three to six months," said Vikas Khemani, co-head of institutional equities, Edelweiss Capital.
Amitabh Chakraborty, President-Equity, Religare Securities, said: "We believe the market is trying to find a bottom. The exogenous factor, such as US recession has in general caused risk aversion, so a few FIIs , especially hedge funds have sold. Additionally some large proprietory book players had to liquidate their position, not only in India but across Asia."
"India has been the best performing market until now, naturally in a liquidity squeeze back home, these pop book have turned sellers. We believe this week market will stabilize, and if volatility gets reduced, slowly market will recover, as the refund money from Reliance Power issue comes back to the system and the market builds on budget expectation in February," he added.
"There is no direct impact as banks in India are not exposed to CDOs with sub prime assets. However, India is exposed to global risk aversion because of anticipated deep recession in the US. Much of industrial growth last year was due to easy capital, mostly from the private equity and FCCB or through the QIP route. If that flow tapers off, as risk become costly, then India's growth story might come under risk., at least over a medium to long term perspective."
"We have advised our clients to adopt a wait and watch policy as there has been no change in fundamental macro story. If investors are holding sound micro story, they should avoid selling, as n our opinion this is not the right time to get out."
"As the market has fallen so much, recovery will be led by the blue chips. We believe Reliance Industries ,L&T, ABB, SAIL ,SBI offer value, purely from price performance point of view. We like HDIL, KS Oil, HCC, MRPL, Opto Circuit and Punj Lloyd in the mid-cap space."
Shahina Mukadam, head research, IDBI Capital, said: "The Profit booking and selling by FII's in the last couple of sessions has been a major factor in the sharp market correction. The markets recovered post lunch with support from the domestic institutions and mutual funds and we expect that the markets will stabilise at the current levels."
"The impact of the US subprime crisis on the financial sector is having its ripples across the world and selling is happening across global markets. Investors should start investing if not already doing so in the markets at the current levels and should buy fundamentally strong companies."
VALUE PICKS FROM EXPERTS (Stock are in alphabetical order)
Aban Offshore
BHEL
DLF
GMR Infrastructure
HDIL
ICICI Bank
Indian Overseas Bank
ITC
Jaiprakash Associates
JSW Steel
Lanco Infratech
Larsen & Toubro
NTPC
Oriental Bank of Commerce
Patel Engineering
Power Grid Corporation
Punjab National Bank
Reliance Communications
Reliance Industries
Tata Motors
Voltas
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