Nifty, Sensex Tumble — Market Veterans Say Recovery On The Cards, Point Out Sectors To Watch

It's been a tough Friday for Dalal Street as markets have plunged, with the Sensex falling over 1,300 points and the Nifty 50 taking close to 2% hit. In the last month, the 50-stock index has fallen around 6%. So, is it time to panic sell or go for the age old 'buy-on-dips'? Well, according to market veterans, the latter.

Most froth is out of the markets, according to Emkay Investment Managers Ltd.'s Chief Investment Officer Manish Sonthalia. As far as levels are concerned, 21,800 is crucial for the Nifty 50, according to Goldilocks Premium Founder Gautam Shah. The NSE Nifty 50 may try to stabilise after bottoming out.

It is known that the main issue is tariff outlook. It has been blown out of proportion, when it comes to the reciprocal tariff. Finality will be watched for India, Sonthalia said.

The differential duty is just about 5%. Segments like agriculture and automobile components may have 20%, each. On a weighted basis, on India's basket, the differential duty is just about 5%. Whether this drubbing in the market is warranted is doubtful, Sonthalia said.

India is, by and large, a domestic centric economy. It's share of global trade is not that big, he said.

Consumption is the next big thing for Indian markets for upcoming years. The tax cuts, and effectivity of 8th pay commission will likely boost consumption stocks, the CIO said.

Financials are hardly impacted due to reciprocal tariff. Emkay Investment Managers also finds value in technology stocks and pharma space, Sonthalia said.

Indian markets have been on a classical downturn for last five months. What really surprises market participants is that for the first time India has gone completely off track, as have the global markets, said Shah.

Markets are in oversold category, but it hasn't shown any intent to recover from any point. For the market to catapult, large-cap stocks need to correct, Shah said.