Wait for valuations to correct further before you buy market favourites

Value is emerging beyond frontline indices

The market correction appears to be gathering momentum. The Nifty is down 5 per cent since Budget day and 2.1 per cent over the past three months. 

Mid- and small-cap indices have been hit hard, declining 8.9 per cent and 12.2 per cent, respectively, over the past three months.

However, instead of panicking, investors could view the current market correction as an opportunity to purchase quality stocks, which are usually too expensive when the going is good.  

One key reason for the ongoing correction is the crisis among non-banking financial companies (NBFCs). “As NBFCs’ cost of funding moved up and refinancing debt became