The imposition of LTCG tax, higher fiscal deficit target for FY18 / FY19 and the recent PNB scam has dented the near term investor sentiments. With an uncertain global environment and weak domestic sentiments, market volatility is likely to remain high over the next couple of months. Nonetheless, notwithstanding the near term uncertainties and volatility, we believe India would continue to remain a preferred investment destination for FIIs and DIIs and its premium valuation over other emerging markets would sustain, given the expected revival in corporate earnings & economic growth and continued reforms implementation. Any further correction at this juncture should be considered as a healthy buying opportunity with a medium-to-long-term horizon.