Equity Outlook – Buy the Sell Off – HDFC Bank

Here is the outlook of Indian Equity Market by Analysts of HDFC Bank’s Private Wealth Management Group – largely in-line with other fund managers of the HDFC Group [ Mutual Fund and Insurance]

India’s overall growth remains robust led by a strong performance in the Manufacturing and Services segment due to visible improvements in the consumption demand. India remains amongst the fastest growing economies globally inspite of lingering concerns on the global front. Q3FY10 results came on expected lines with no major surprises. Union Budget & International events is likely to provide further direction to the markets.

FII outflows due to increasing risk averseness could compress the valuations in the near term. Any sharp correction in the markets should be used as a buying opportunity for medium to long term investors. The key to the market’s move upwards remains corporate profitability supported by a global recovery.

Take exposure to large cap and Flexi-cap fund and in direct equities. HDFC Analyst advises – to invest 75% as lump- sum & stagger the rest 25% over the next 3 months.