Markets showed some signs of a recovery this week, but analysts think there is still bottoming out left, as the Nirav Modi-Mehul Choksi story develops. They are the looming villains for the Sensex and the Nifty. Since 26 Feb, when Punjab National Bank added an additional Rs. 1,300 crore to its losses, markets have seen a negative trendline. More banks have been drawn in, as they admit exposure to the Choksi-Modi companies, including ICICI Bank and Union Bank of India.
Despite the correction, the Sensex and Nifty500 have yet to reach the lows seen in Nov-Dec 2016, post-demonetization. Markets are also still higher than the recent correction in September 2017. For smart investors, the downtrend is an opportunity to check out valuation scores of good stocks. Two stocks that have seen a price correction in recent days are midcap IT company Cyient and KPO firm FirstSource Solutions.
