Punita acknowledged that valuations in the market are not extremely cheap, especially given the recent rebound in stock prices. While the market has experienced some volatility in the past few months, valuations are not at distress levels but rather at fair value. The key factors influencing this are the still-negative earnings growth, global economic slowdown, and rising inflation in many regions, despite India’s relatively stable inflation. Additionally, geopolitical tensions and trade uncertainties, particularly between major economies, continue to exert downward pressure on market sentiment. Given this context, Punita sees a possibility of market corrections, and advised that such dips could be used as a buying opportunity for long-term investors.
