Wed Feb 12 10:51:13 UTC 2025: ## Market Correction Presents Buying Opportunity, Says Finvest CEO
**MUMBAI** – Varun Fatehpuria, founder and CEO of Daulat Finvest Private Limited, advises retail investors to capitalize on the recent market correction by increasing their stock market investments. In an interview with Mint, Fatehpuria highlighted the current market’s mixed picture, with large-cap stocks appearing fairly valued while mid and small-caps trade at a premium despite slowing earnings growth.
While Q3FY25 earnings showed strong performance in IT, financial services, infrastructure, and capital goods, sectors like consumer discretionary, auto, and microfinance faced headwinds. However, Fatehpuria points to the recent RBI rate cut and aligned fiscal policies aimed at boosting consumption as positive indicators.
He believes the current volatility offers a chance to acquire undervalued assets and lower average investment costs. He cautions that exogenous risks, particularly the uncertainty surrounding the US administration’s policies, will contribute to market volatility over the next four years. This necessitates careful portfolio management to balance potential gains and losses.
Fatehpuria emphasizes the importance of stock selection and sector allocation, recommending a focus on companies with strong market leadership, pricing power, and robust cash flow. He suggests a staggered investment approach for mid and small-cap exposure and advises mutual fund investors to consider diversified equity funds.
Sectors poised for growth, according to Fatehpuria, include consumption-driven areas like FMCG and auto, benefitting from recent tax cuts, as well as BFSI and Pharma due to favorable valuations. He warns against investing in “hot money,” narrative-driven areas, and stresses the importance of focusing on companies with strong earnings growth and quality. Ultimately, investors should prioritize companies where stock prices accurately reflect intrinsic value and earning potential.
First Piper 