3 days ago
Expert Urges Investors to Buy Indian Market Dip
Indian shares have fallen from their recent highs and are moving up and down a lot.
Shweta Rajani of Anand Rathi Wealth says investors with long-term goals should not wait for the perfect time to invest.
She recommends continuing regular SIP investments.
People with a large amount of money to invest could divide it into five or six smaller investments.
Higher oil prices and decisions by the United States Federal Reserve could make markets more uncertain.
However, Rajani says India’s economy has handled earlier oil-price increases reasonably well.
She sees large companies, exporters, infrastructure and capital goods as areas investors may consider.
She also says investors should spread their money across different types of companies instead of betting on one sector.
Shweta Rajani says long-term investors should buy gradually rather than wait for the Nifty to stabilise.
The Nifty 50 is trading about 10–12% below estimated fair value based on forward earnings, according to Rajani.
Crude oil above $95–$100 could cause near-term volatility, but historical data suggests limited lasting damage to Indian growth.
Export sectors, capital goods and infrastructure may be relatively well placed, although Rajani recommends broad diversification.
August equity mutual fund inflows reached ₹38,959 crore, while SIP contributions hit a record ₹32,300 crore.
- Who
- Shweta Rajani, Associate Director at Anand Rathi Wealth Limited, and investors in Indian equities.
- What
- Rajani advised long-term investors to continue SIPs and gradually buy during the market correction rather than wait for stability.
- Where
- Indian equity markets, including the Nifty 50 and Sensex.
- When
- The interview discusses conditions in August and September 2026, including August 2026 fund flows and the upcoming September policy and geopolitical developments.
- Why
- Markets face uncertainty from crude oil prices, geopolitical developments, United States monetary policy and foreign-investor flows.
Buy Gradually During Weakness
Wait for Greater Stability
Timing the market
Buy Gradually During Weakness
Rajani says long-term investors should treat the correction as an opportunity, continue SIPs and deploy lump sums across several tranches.
Wait for Greater Stability
Investors concerned about another near-term correction may prefer to wait for clearer market stability, although the interview says the exact bottom cannot be predicted.
Impact of high crude prices
Buy Gradually During Weakness
Historical data cited by Rajani suggests even sharp crude-price increases have generally produced temporary equity volatility rather than lasting damage to Indian growth.
Wait for Greater Stability
Crude above $95–$100 could pressure Indian equities, inflation and the rupee, particularly if elevated prices persist.
United States Federal Reserve policy
Buy Gradually During Weakness
A pause or rate cut could lower United States yields, weaken the dollar and encourage foreign investment into Indian equities.
Wait for Greater Stability
A hawkish decision driven by sticky inflation could keep Treasury yields and the dollar elevated, increasing pressure on the rupee and foreign-investor flows.
Key facts
- Nifty valuation
- The Nifty 50 is about 10–12% below its estimated fair value based on forward earnings, according to Rajani.
- Suggested allocation
- Rajani suggested roughly 50–55% in large caps, 20–25% in mid caps and the balance in small caps.
- Lump-sum strategy
- Investors with lump sums could deploy them gradually in five to six tranches over the next few weeks.
- Crude-oil history
- Across eight sharp global crude-price increases since 2000, Indian retail petrol and diesel price increases were 10% or lower, according to the interview.
- Foreign-investor flows
- Foreign institutional investors were net buyers of ₹29,631 crore in August 2026, their highest monthly inflow in 23 months.
- Mutual-fund inflows
- Active and passive equity funds received net inflows of ₹38,959 crore in August.
- SIP inflows
- SIP inflows reached a record ₹32,300 crore, rising 14% year on year.
Sources
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