After a brutal correction, is the Indian market poised for recovery? Aashish Somaiyaa, CEO, WhiteOak Capital AMC, who manages a staggering ₹27,000 crore in Indian equities, reveals his insights on Business Today's Market Masters show. We delve into crucial questions: Is the worst behind us? How should retail investors navigate these turbulent times? Aashish Somaiyaa cautions that while a significant portion of the correction is likely over, the market is not entirely out of the woods. He highlights the impact of US market volatility and global economic concerns. He advises investors to "stagger their investment" over the next 2-3 months rather than making aggressive moves. He emphasizes the importance of portfolio construction over mere stock picking. Aashish Somaiyaa warns against averaging down on past winners, particularly in sectors like PSUs, railways, defence, and infrastructure, which have seen substantial corrections. He suggests focusing on sectors that have underperformed during the downturn, such as private sector financials (including NBFCs), IT, healthcare, and select discretionary consumption areas. He highlights that large cap stocks are favoured in their funds allocations, then small cap and lastly mid cap. Aashish Somaiyaa stresses the need for a diversified portfolio, including gold, equity, and debt. He advises against getting caught up in micro-analysis of FII selling and market fluctuations, emphasizing the cyclical nature of the market. The Top expert addresses the debate on SIPs and market volatility, highlighting the inherent volatility of small-cap funds and the importance of investor patience. He explains that small cap funds are great for alpha generation, but are also very volatile. Aashish Somaiyaa believes that a year from now, the market will be in a much better position, especially if the current correction is driven by external factors.
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