Don’t worry even if we see a 1,000-point correction on Nifty, says AK Prabhakar of IDBI Capital
"Even if we see a correction till 15,000, I'd call it a welcome correction as one can use the dip to buy"
Domestic equity markets were trading with heavy losses on Tuesday afternoon as bears continued to assert control on Dalal Street. S&P BSE Sensex was down 471 points below 52,100 while the NSE Nifty 50 index was hovering around 15,600, down nearly 1%. Bank Nifty fell 1.85% to trade at 34,468. AK Prabhakar of IDBI Capital spoke to Money9 on the way forward for the markets.
“Even if we see a correction till 15,000, I’d call it a welcome correction as one can use the dip to buy. Corrections in bull markets are fast and recovery is slow. Investors must worry even if we see a 1000 point correction on the Nifty, it may happen over a course of 10 trading sessions and then a gradual recovery may take place over next 20-25 odd days”
On the sectors which he believes will see money flowing in, he said one can keep IT and metals on their radar. He advises investors to buy stocks which are growing at 15% CAGR.
Speaking about the rush in the primary market space and the new listings he said, “Retail investors will not make money in Zomato. The company is not profitable and may not turn one for the next 5-10 years, would advise them to not invest in the new listing”
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