‘Right Time to Build a Good Portfolio’: Traversing Market Amid Uncertainty

By Malvika Gurung

Investing.com -- Major indices on Dalal Street gave away all of their opening and early gains by the afternoon session on Tuesday and sank in the red.

While writing, Nifty50 declined 0.3% to 16,935 points and Sensex lost 86.95 points or 0.15%.

In a note provided to Investing.com, Dr V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services indicated that there is a level of certainty regarding growth prospects.

“The current market signals indicate that the worst of the banking crisis is behind us. S&P 500 is now trading above the March 10 level when SVB (BVMF: S1IV34 ) collapsed. The stock prices of European banks also are improving indicating that there are no fears of contagion now,” he said.

However, the market expert has advised investors to be cautious since there is some element of uncertainty despite the apparent return to stability.

He noted that despite a slowdown in the global economy, India will outperform.

“India’s banking system is well regulated, strong and resilient. This period of uncertainty and volatility is the right time to build a good portfolio. High-quality stocks with reasonable valuations and good earnings visibility can be accumulated now,” Vijayakumar stated.

Starting April 13, banking, capital goods and telecom sectors will begin posting good Q4 results in the earnings season.

Further, the valuations of IT stocks have become reasonable even though the segment will face headwinds from the US slowdown, the expert added.

To understand more about trading and navigating the markets at a time like this, Investing.com is conducting a webinar on Wednesday, March 29, 2023 at 7:30 pm Indian Time. You can find more details here: Where Should You Invest Right Now? Heres Warren Buffetts Advice