Market Update: Emkay Cautions on Market Correction Depth, Advises Caution on PSUs and Capital Goods

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India's general elections have thrown up a surprise, with the ruling NDA set to return to power, albeit with a reduced majority, and the BJP falling short of a majority. This political shift has led to an almost 6 percent drop in the Indian markets.




In a recent report, brokerage house Emkay has shared its perspective on the market correction. According to Emkay, the current Price-to-Earnings Ratio (PER) of 19.5x indicates that the market correction is not deep enough yet. At present levels, Emkay maintains a neutral stance on equities, recommending staying invested but not adding to positions.

Emkay suggests that if the Nifty corrects another 10 percent, falling below 20,000, the market would then be attractively valued at less than 18x PER. This would present a potential entry opportunity back into Indian equities.

Disclaimer: Investment decisions should be based on individual financial goals and risk tolerance. The views expressed by Emkay are for informational purposes and may not be suitable for all investors. Always consider consulting with a financial advisor before making investment decisions.


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