After a near-free fall, the BSE Sensex is now 26% off its 10 May peak. With waning global risk appetite, reversal in domestic funds’ net buying and RBI tightening, markets to remain volatile in the near-term. Overall market valuations are moving towards fair value. However, post 37-47% fall from peaks, we see value in Reliance Energy, Tata Steel. BHEL, HLL, Sun Pharma, Maruti & Infosys remain core BUYs.
We continue to recommend trimming positions in Pantaloon, Sun TV.
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