No need to worry about recent 'shallow' market correction: Saurabh Mukherjea of Marcellus Investment

Saurabh Mukherjea, founder, Marcellus Investment Managers, on Friday said that the Indian economy was showing solid signs of recovery and that there was no need to worry about the recent "shallow" market correction.

“The correction should be the least of anybody's concerns watching this. You are in a classical early stages of an economic recovery, I think anybody watching this has to just step out of the house, to see the Indian economy clicking through the gears, and moving towards a fourth gear, I don't think the economy's in fifth gear as yet, that's probably next year,” he said.

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According to Mukherjea, now is the right time to buy well-run financial companies. "Data from November 2021 suggests that credit offtake has picked up," he said.

“This is as good a time as any. We are in the early stages of what looks like a market recovery in economic growth globally and in India. Invest in well-run lenders and play the economic cycle with them rather than investing in more speculative sectors such as a real estate, travel, transport, infrastructure, aviation and so on,” he mentioned.

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Mukherjea also said that firms like Pidilite and Titan have seen massive compounding in their cash flows. He expects Nestle's profit after tax (PAT) to grow by 20 percent per annum in years to come.