Goldman Sachs says buy put option on Nifty as macro headwinds are likely to persist in the near term in India driving its cautious view.
The investment bank says despite near-term risks such as recent strong performance amid foreign inflows, elevated bank NPLs and regulatory overhang, Nifty volatility and skew are currently at multi-year lows with put premiums at 5-year lows.
The bank adds that Nifty puts are also the least expensive across major markets globally and offer higher payoffs if markets retrace to recent lows.
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