Is it time to buy the dip in stocks? The question is important just as domestic benchmark equity indices slip into red amid uncertainty due to Russia-Ukraine crisis, and several investors join the "buy now" bandwagon.
However, some are advising to wait more for the "right opportunity".
Broking major Zerodha's co-founder Nikhil Kamath, who also runs fund management house True Beacon, believes investors can gain more if they wait for the "bigger opportunity" as the market valuations are not conducive.
“Considering the headwinds we have both geopolitically and how the economy has slowed down, probably not a good time to buy. If I were an investor entering the market, I would wait for a correction, a bigger opportunity to enter relative to today,” said Kamath in an interaction with ETMarkets.com recently.
Kamath believes inflation is the biggest risk to the market right now.
In a tweet, Kamath on Friday said, "If oil stays where it is vs. the $70-75 RBI factored in, where do you think inflation and interest rates will be 6 months from now?"
“Markets haven't corrected that much, they've gone up 100% and come down 12-13%. But in terms of volatility, whenever you see 10-12% corrections, they tend to correct a bit more. So, I would not like to say that it's a good time to buy. There is plenty of news coming out on an hourly basis with this geopolitical tension that is going on. So, I think people should wait, see what happens with inflation and see what happens with the geopolitics of it all. I don't think the time is right yet to ‘buy the dip’," he had said in an interview with Mint recently.
Started in 2010 by Nithin and Nikhil Kamath, Zerodha offers stockbroking services. The startup claims to have over a million active clients who trade and invest through the platform.
