At last Indian Equity market has seen some correction after a long run up of 6 months. Reasons being: European market is feared to be again entering deflation, commodity prices are correcting and post re-rating of Indian equity market participants are looking for visible improvement in the corporate earnings. Market has corrected by around 4% from its recent peak. The fear is whether global uncertainty can take the Indian equity market materially down from current level or not.
We feel current correction driven by global uncertainty may continue for some more time. We may see NIFTY correcting to 7600-7700 levels where valuations will become reasonable considering the prospects of improvement in Indian Economy. We feel this correction is giving opportunity to BUY the stocks with long term outlook.
Hence, this Diwali we are recommending following stocks which can be purchased in this correction with long term view.