Panic Selloff in Large-Caps Is a Buying Opportunity: Expert
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- Sunny Agrawal of SBI Cap Securities told ET Now the recent selloff in large-cap names is driven by panic and worst-case geopolitical assumptions rather than a deterioration in business fundamentals.
- Companies with 25-30% Middle East exposure are being priced as if their entire order books won't execute over the next 6-24 months — an extreme scenario Agrawal says the market is over-extrapolating.
- One company's order book stands at approximately Rs 4.3 trillion with ~30% private sector contribution, which Agrawal cites as evidence that private capex is picking up despite recent volatility.
- Agrawal pegs fair value of the business at Rs 4,000-4,200, calling any current dip "a good buying opportunity for a long-term investor."
- Post-correction, Eternal and Swiggy look attractive with long-term growth opportunities intact despite rising competition in consumer internet.
- Crude oil sustained above $90 for 3-6 months would trigger inflationary pressures across the value chain, though India's recent low inflation provides a cushion against energy volatility.
- Private bank valuations have become reasonable after the correction, with Agrawal recommending a mix of private and well-diversified public sector banks to navigate the current environment.
Why it matters: Long-term investors looking past the panic are being offered entry points into quality names Agrawal pegs at Rs 4,000-4,200 fair value, but the bullish thesis hinges on crude oil staying manageable and Middle East tensions easing — both unresolved risks that could re-ignite the very selloff he's advising investors to buy into.
