Time to buy stocks! Enormous damage in markets, but economic fundamentals haven’t deteriorated so badly
It is lack of adequate liquidity in the hands of individual investors, the absence of any inflows from the foreign investors, a significant correction in the global equities and unnecessary exaggerated fear on the markets have led to steep fall in the domestic equity wealth which is unprecedented in terms of magnitude.
Quality banks trade at a steep discount to adjusted book values after a long gap of over 13 years. Image source: Reuters