Sunil Singhania believes that more than 90% of the recent market decline has already been priced in, creating an opportunity for investors. He suggests deploying 30–50% of available cash into equities at current levels, as valuations have turned reasonable and macroeconomic conditions continue to improve.
The founder of Abakkus Asset Manager LLP, in an interaction with NDTV Profit, said markets have reacted sharply to geopolitical tensions, crude oil fluctuations, and foreign investor outflows. However, much of the downside appears to have already been absorbed. “More than 90% of the market pain seems to have been discounted,” he noted.
Benchmark indices have corrected significantly this year, with both the Nifty and Sensex entering a downturn amid higher transaction taxes, currency weakness, and global uncertainties. March saw particularly steep declines, marking the sharpest fall since the Covid period.
Singhania attributed the volatility largely to uncertainty in global developments rather than any structural weakness in the economy. He added that while geopolitical conflicts tend to create nervousness, markets are gradually adjusting to changing news flows. Crude oil price volatility has also eased, with movements now relatively contained compared to earlier spikes.
Foreign institutional investors have been major sellers, particularly in March, exerting additional pressure on Indian markets. Despite this, Singhania remains confident about India’s economic outlook, highlighting a steady growth trajectory of 6.5–7% that continues to support equities.
He pointed out that valuations have corrected after a phase where Indian markets traded at a premium to global peers. Even before recent geopolitical tensions, macro conditions were improving, supported by tax cuts, lower interest rates, better liquidity, and a recovery in demand.
For investors, he emphasized a balanced approach rather than excessive caution. Those holding cash should begin gradual deployment, given the current market setup.
On sectoral trends, Singhania highlighted pharmaceuticals as a strong area due to earnings visibility and favorable currency movements. Banks, on the other hand, have been under pressure from foreign selling and bond yield fluctuations but could rebound quickly once stability returns. He also sees opportunities in consumption-driven stocks and select segments within chemicals and metals, supported by resilient domestic demand.
