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The fortnight’s burning question. Is this a good time to be a contrarian and start buying value stocks once again?

     Print Edition: August 10, 2008

The fortnight’s burning question. Is this a good time to be a contrarian and start buying value stocks once again?

Maybe. Yatin Shah, President, India Infoline Wealth
I feel valuations have started looking attractive. It is advisable to stay cautious till the global markets and the domestic political environment show signs of stability. I think it’s time for selective exposure to companies with a long-term view where bottom-up valuations look attractive. One can look at certain beaten down sectors such as banking.

Yes. Amitabh Chakraborty, President (Equity), Religare Securities
I would suggest buying in fundamentally sound companies in sectors that have been beaten down the most such as infrastructure, capital goods, and real estate. At current prices, these sectors offer a buy opportunity at extremely cheap valuations.

Yes. Nimish Shah, Managing Director, Fortune Financial Services
We have seen Indian markets correct more than 35 per cent since the January peak level, and price-wise some stocks have corrected more than 50 per cent. I recommend fresh buying into certain blue-chip stocks with a two-year investment horizon. Stocks like L&T, BHEL, ICICI Bank and SBI offer a huge upside potential.

—Compiled by Manu Kaushik

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