After around a 16% fall from a record high, “I can’t rule out another 5% decline from here in the market, but a 10% correction seems unlikely,” Rohit Beri, the CEO and CIO at ArthAlpha, said in an interview with Moneycontrol.
According to him, a sideways market in the next quarter is highly probable. “Keep in mind that a sideways market doesn’t mean sideways stocks; there are excellent stock-specific opportunities available, both from a short- and medium-term perspective,” the investment professional stated.
Monetary Policy & Rate Cut Possibilities
Discussing the upcoming Reserve Bank of India (RBI) policy meeting next month, Beri expressed skepticism about an April 2025 rate cut, citing current economic data.
“If the RBI surprises with a dovish stance in April, it would likely be signaling confidence in inflation being under control,” he said.
Can Financials Drive Market Recovery?
When asked whether financial stocks could lead the market out of the current downturn, Beri acknowledged the sector’s potential but remained cautious.
“It’s hard to say for certain, but financials could potentially play a significant role in helping the market recover, depending on several factors. If financials, particularly banks and other financial institutions, can demonstrate solid earnings, strong capital positions, and effective risk management, they might boost investor sentiment and provide some stability to the market,” he explained.
Financials are often viewed as a barometer for the broader economy, and their resilience could indicate that economic concerns are overblown, helping to shift market sentiment positively.