After 3-day pain, some gain; Nifty ends above 7800 mark

Commenting on the current market situation, Amar Ambani, Head of Research, IIFL said, “The dramatic fall in Indian equities recently, triggered by global sell-off, offers a significant buying opportunity for investors. The best part is that one needn’t go hunting for small gems – many large ones are trading at attractive long-term valuations. Large caps offer reasonably high business visibility and their relative attractiveness has improved with midcap valuations catching up in last few months. Volatility is expected to be high for the rest of 2015 on account of global factors like additional Chinese currency devaluation, US Fed rate hike and policy logjam and state elections in India. Large caps may provide a margin of safety vis-a-vis mid and small caps in such a scenario. A possible Repo cut by RBI, given lower than expected inflation and, low global commodity prices supporting corporate earnings are likely positive triggers for the market.”