As Dalal Street investors await a strong comeback by the wounded bulls, Kotak Institutional Equities sees a favorable price-value gap in more stocks after the sharp correction in recent weeks, which it says will help dispel the ‘gloomy’ mood in the market.
The brokerage in its latest Strategy report highlighted that many market investors are taking cues from stock prices instead of their value, which has resulted in “euphoria and despair”. “We see value in more parts of the market, as valuations have come off sharply across sectors and stocks. Market multiples are reasonable, although we focus less on top-down index valuations,” it said.
