Sandeep Tandon of Quant Mutual Fund has issued a newsletter stating that the correction in the equity markets is nearing its conclusion. He said that while the market sentiment has become excessively negative, with several segments now falling into the 'neglected or hated' category, it's the right time to adopt a more constructive stance.
"From our perspective at Quant Mutual Fund, the timing is right to become constructive on the markets. We believe that the market has potential to recover and gradually rally from this point on," Tandon said.
He also said that while both economic and corporate data have shown signs of deterioration, these underwhelming indicators are largely priced into the markets.
In its monthly note to investors, Quant Mutual Fund said, "Although high level macro-economic and corporate earnings data merit tracking, most, if not all of these below-estimates data are factored in and timing is ripe for being optimistic about selective segments of the market. Hence, we are now close to fully deployed and believe that risk-off phase is in its fag-end stage."