How to spot gems in this market? Nuvama's Shiv Sehgal shares his mantra

In a recent interview with ETMarkets, Shiv Sehgal, President and head of Nuvama Capital Markets, shared insights on the Indian equity market's recent correction and its connection to global events.

He discussed the prospects of long-term investing in India, cautioned about small and midcap spaces, and provided guidance on identifying investment opportunities in a volatile market. Here are key takeaways:

Shiv Sehgal discusses adding weight in the healthcare segment and staying underweight in metals, energy, IT, and utilities. He emphasized the need to focus on quality names with strong fundamentals and earnings outlook to withstand market volatility.

The impact of global events, the rise in the US yields, and geopolitical concerns are key factors behind the fall seen in the Indian equities, Sehgal said.

Shiv Sehgal encourages long-term investors to accumulate in the current market conditions. Explore India's 5D advantage, including deglobalization, low debt-to-GDP ratio, deregulation, demographic advantages, and a democratic system as positive factors for long-term investment, he said.

Shiv Sehgal suggests caution in the small and midcap space due to significant gains and increased global volatility. He highlighted the potential impact of fading margin tailwinds and moderate growth on sentiment.

Sehgal highlights the importance of cash-rich, non-cyclical companies, micro triggers, and reasonable valuations for spotting potential investment gems.
(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)