CA Rudramurthy BV, MD, Vachana Investments highlighted the continued pressure from foreign institutional investors (FIIs). “See, if you look at Nifty and Bank Nifty which were just relatively better compared to mid and smallcap or the broader market, you saw a clear correction in both of them as FII selling aggravated. In fact, FIIs, if you see the numbers, they have sold over ₹45,000 crore just in a period of last one month.” He added that macro factors, including the rupee touching all-time lows against the dollar and Brent crude crossing $100 per barrel, have intensified market stress. “Because of the reasons of Strait of Hormuz being closed, it has been very, very jittery in terms of the Brent crude price and that will definitely affect a country like India, even though the fight is between Iran, Israel, and the US,” he said.
Rudramurthy described the market as a “sell on rise” environment, cautioning investors against buying indiscriminately. “All supports are getting broken, and now the next support to the market comes closer to 23,200 for a very short term. Once you break that, a move towards 22,000 eventually can happen on Nifty. Those investors who feel this is a great opportunity to buy for long-term, do not go all out once and then buy everything at this level. Just in a piecemeal manner, on every fall, it is good to invest.”
He emphasized the importance of selective investing in the current environment. “You have to be very sector-specific and stock-specific in this market. On the buy side, where you have relative strength, it will be pharma. You also see certain public sector undertakings where you have valuation comfort, and finally, metals which have now started correcting. If you get some more dip, that offers a good buying opportunity for someone looking for one- to two-year horizons.” Rudramurthy advised caution in sectors showing sustained weakness. “This fall in the market will continue with banks leading the fall, IT continues the fall for a long time, and even autos and real estate are very, very weak. I would definitely avoid IT, autos, private banks, and real estate for the short term.”
On stock-specific recommendations, Rudramurthy shared a mix of buy and sell calls. He said, “PG Electroplast has broken all crucial supports, and there is a lot of open interest built up today. The stock is moving down. Initial targets for PG Electroplast are around 475. Keep a stop loss of 525, and every rise is a selling opportunity in this very weak counter.” For buying opportunities, he pointed to pharma. “From pharma, I want to definitely look at a buying opportunity, and that is Aurobindo Pharma. This stock has consolidated and given a clear breakout above levels of 1,200–1,250. Any dip you get because of overall market weakness will be a buying opportunity. No doubt, even Dr Reddy’s looks strong, and pharma as a pack is relatively far better compared to the overall market. I am picking Aurobindo Pharma for a target of 1,400, and one can have a stop loss of 1,270 for this long call.”
As market participants navigate heightened uncertainty, experts stress patience, selective sector exposure, and staggered investing as key strategies to manage risk in the near term.
