Nirmal Bang Securities CEO speaks to Anil Singvi, says near 10 pct market correction coming; reveals what investors should do
Nirmal Bang Securities Institutional Equity CEO Rahul Arora has said that Indian stock market is overvalued and it may undergo correction to the tune of 10 per cent before June 2020.
On account of earnings and Gross Domestic Product (GDP) projections, the Nirmal Bang Securities Institutional Equity CEO Rahul Arora has said that Indian stock market is overvalued and it may undergo correction to the tune of 10 per cent before June 2020. However, he he had a tip for investors. He maintained that long-term investors should be investing by keeping the earning projections of FY22 instead of FY21 in mind, if they want to make money from the market. Arora was talking to the Zee Business Managing Editor Anil Singhvi today.
Arora said, "If we look at the current earnings and GDP projection, the Indian stock market looks 10 per cent overvalued and I am expecting that much of correction in the stock market before June 2020." Arora said that no company is in the overvalued condition and hence there is no such trigger that will fuel the Indian share market in coming months.
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On what should be the ideal strategy to make money from the current stock market scenario, Arora said, "In current market scenario, people should stop looking at the FY 21. Q1 of the FY21 is almost gone and in coming quarters of the FY21, we can't expect much on earnings and other aspects of the stocks. So, one should be investing while keeping the FY22 projection in mind."
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On the expected range where the stock market will gain stability, Arora said, stable range for the Indian market stands at around 8,000 to 8,500 at NSE Nifty index.
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