Market correction offers investment opportunities

The Sensex has declined 7 per cent from its record high of 28,882 achieved on November 28 on concerns over global growth. But, the correction in mid-& small-cap stocks has been steeper. Onethird of large-cap companies with market capitalisation over Rs 10,000 have fallen between 20 per cent and 60 per cent from their yearly highs, while 120 of 270 mid-cap stocks declined between 20 per cent and 70 per cent.

Analysts believe the situation may be ideal for investors, who missed out on the recent rally, to lap up some quality stocks. “For the retail investors, it is important to remember that the India story has not changed. It has only got better as stock prices have fallen over the course of the last few days,” said Jim Walker, founder & chief economist, Asianomics Group.