‘Nifty could fall another 5-6%’: Vineet Sambre’s advice on making the most of it

Nifty could see another 5-6% correction, but the bulk of the mid-cap and small-cap declines may have already played out, according to Vinit Sambre, Head of Equities at DSP Mutual Fund, which manages over $22 billion in assets.“We are at 19 times earnings on the Nifty, and we have corrected 12-13% from the top. If we assume 18 times earnings as the base, there could be another 5-6% downside left on the Nifty,” he said.

Sambre suggests that during times of market uncertainty, when there is mild level of panic-driven decline, investing through a systematic investment plan (SIP) can be a good strategy.

Read Here | Mid-smallcaps may see further weakness: Rohit SrivastavaMany small and mid-cap companies, he notes, have become stronger and more efficient, emerging as market leaders. Industry consolidation has made these businesses more capital-conscious. Staying disciplined with investments over time can yield positive results.
However, market sentiment has shifted from a strong growth phase to a more challenging period, bringing short-term difficulties that investors need to navigate patiently.DSP Mutual Fund’s focus during market corrections is on adjusting and rebalancing the portfolio rather than making changes in asset allocation between largecap and midcap stocks.

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Consumption is now emerging as a potential opportunity, especially given the government’s emphasis on it in the Budget.

While investments have taken a backseat, the approach is more about fine-tuning sectoral allocations rather than making drastic changes in overall portfolio composition, Sambre added.

DSP Mutual Fund finds discretionary consumption, hospital, and insurance stocks attractive at this stage.

Watch the accompanying video for the full interview.