Record Covid-19 cases drag Sensex down by 9% from all-time highs; is it the right time to invest in Indian stock market?

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Are you someone who is still sitting on the sidelines despite a correction in benchmark indices BSE Sensex and NSE Nifty from their record high levels seen in February this year? Majority of analysts feel investors should start picking up stocks in a staggered manner considering the rising coronavirus cases in the country.

The 30-share BSE Sensex has tanked 4,493 points, or 8.55%, to 48,023 from its all-time high of 52,516. Likewise, the 50-share Nifty index has lost around 1,050 points, or 7%, to 14,384 during the same period.

“Investors can now start picking up stocks after the recent correction. There are several attractive stocks in small and mid cap space. They can enter and buy in a phased manner over the next two months as a pandemic is likely to peak out by June,” said G Chokkalingam, Founder, Equinomics Research and Advisory.

There are hopes that a pick-up in vaccination drive will increase herd immunity and reduce the pandemic’s impact within four months. “Markets are likely to remain stable and I do not expect any major crisis in the short-term,” said Chokkalingam.

Kranthi Bathini of WealthMills Securities concurs with Chokkalingam.

“Investors can start picking stocks at every dip for long term investment as fundamentals and macro indicators are intact right now,” he said.

On the other hand, independent market analyst Ambareesh Baliga advised investors to continue to remain on the sidelines. “The market is not considering the rising Covid cases and its impact,” he said.

India reported 3,32,730 cases on April 23 with 2,263 deaths in the last 24 hours. Cumulatively, the total number of cases stand at 1,62,63,695 of which the total number of active cases is at 24,28,616, recovered cases at 13,64,8159, while the death toll stands at 1,86,920.

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