According to Nimesh Chandan, Chief Investment Officer at Bajaj Finserv Asset Management Limited, the current market corrections have brought valuations closer to fair levels, creating opportunities for long-term investors. As reported by ETMarkets, Chandan believes that while short-term headwinds may weigh on earnings and sentiment, the broader structural story of the Indian economy remains firmly intact. The Nifty 50 Index is currently trading below intrinsic value, with the base remaining that Indian economy, business cycle and the credit cycle are on an upturn.
For investors planning fresh investments, Chandan recommends a disciplined approach with at least a three-year investment horizon. As reported by ETMarkets, the preferred sectors include Financials, Materials, Industrials, Healthcare and Consumer Discretionary. Within Financials, large private banks are available at good valuations, while the pharma sector specifically focuses on CRAMS (Contract Research & Manufacturing Services) and hospitals. The consumer discretionary sector is equal-weighted with positive long-term prospects, though selective evaluation is recommended for companies facing high energy and material price impacts.
According to Chandan's analysis reported by ETMarkets, markets correct every time crude prices have crossed $100 per barrel. The current geopolitical tensions and rising oil prices present a temporary speed bump in an otherwise strong growth year. While a small cut in earnings cannot be ruled out if the crisis continues, a quick resolution of the West Asia war could prevent significant earnings cuts for FY27. The India–US trade agreement earlier helped stem FPI outflows, but recent geopolitical tensions have triggered renewed phases of foreign investor selling.
As reported by ETMarkets, the INR has seen sharp correction due to tariffs, FPI outflows, and crude spike. Chandan views this depreciation as creating huge export opportunities for Indian manufacturing. The currency pressure is expected to ease if geopolitical crisis abates and crude prices cool off. Gold and silver have witnessed strong rallies, with returns likely to be more measured going forward. These assets should be viewed primarily as portfolio hedges rather than return-chasing opportunities.
According to Chandan's recommendations reported by ETMarkets, investors who can handle near-term volatility should deploy lump sum capital now. For others, staggered investment through STP (Systematic Transfer Plan) or SIP (Systematic Investment Plan) is recommended. The key variables to monitor include evolution of the West Asia crisis and moderation in crude oil prices. Investors should avoid fear and panic, focusing instead on fundamentals and sticking to asset allocation plans, as market corrections present opportunities for disciplined long-term investors.
