Amid heightened volatility and global headwinds, the recent market correction in India has opened up attractive entry points across domestic-facing sectors, according to Pankaj Pandey, Head of Research at ICICI Direct. Speaking at a financial outlook summit in Mumbai, Pandey emphasized that the correction is not a cause for panic but a strategic opportunity for long-term investors to realign portfolios toward sectors with strong structural tailwinds.
“The correction is healthy. It’s allowing valuations to cool off and giving investors a chance to accumulate quality names in domestic sectors like banking, auto, infrastructure, and consumer discretionary,” Pandey said. He added that while global cues remain uncertain due to interest rate cycles and geopolitical tensions, India’s internal demand story continues to be resilient.
Sectoral Opportunities Post Correction – Analyst View
| Sector | Opportunity Drivers | Analyst Outlook |
|---|---|---|
| Banking & Financials | Credit growth, NIM expansion | Positive, especially private banks |
| Auto & Ancillaries | EV adoption, rural recovery | Bullish on passenger vehicles |
| Infrastructure | Govt capex, housing push | Strong order books, execution gains |
| FMCG & Consumer | Festive demand, rural uptick | Selective, margin recovery expected |
| Capital Goods | Industrial revival, PLI schemes | Long-term growth visibility |
Pandey noted that the Nifty 50 and Sensex have corrected nearly 6–8% from their recent highs, driven by profit booking, FII outflows, and cautious global sentiment. However, he believes this pullback is temporary and offers a tactical window to rotate into domestic themes that are less vulnerable to external shocks.
“India’s macro fundamentals are intact. GST collections, credit growth, and manufacturing PMI are all pointing toward sustained recovery. Investors should look beyond the noise and focus on companies with earnings visibility and strong balance sheets,” he said.
Market Correction Snapshot – September 2025
| Index Name | Peak Level (Aug 2025) | Current Level (Sept 2025) | % Correction | Key Trigger |
|---|---|---|---|---|
| Nifty 50 | 20,200 | 18,650 | -7.7% | FII selling, global cues |
| Sensex | 67,500 | 62,300 | -7.7% | Profit booking, rate uncertainty |
| Nifty Bank | 47,800 | 44,100 | -7.7% | Mixed Q2 results |
| Nifty Auto | 17,200 | 16,050 | -6.7% | Chip supply concerns |
| Nifty Infra | 6,200 | 5,750 | -7.2% | Execution delays, monsoon impact |
Pandey also highlighted that retail participation remains strong, with SIP inflows crossing ₹15,000 crore in August 2025. He believes that domestic investors are increasingly becoming counter-cyclical, using dips to accumulate rather than exit.
“Retail investors are maturing. They’re not reacting emotionally to corrections. Instead, they’re using it as a buying opportunity, especially in sectors where India’s growth story is intact,” he said.
Social media platforms and investor forums have echoed Pandey’s sentiment, with hashtags like #BuyTheDip, #IndiaGrowthStory, and #DomesticSectors trending across financial communities.
Public Sentiment – Social Media Buzz on Market Correction
| Platform | Engagement Level | Sentiment (%) | Top Hashtags |
|---|---|---|---|
| Twitter/X | 1.4M mentions | 82% optimistic | #BuyTheDip #IndiaGrowthStory |
| 1.2M interactions | 78% strategic | #DomesticSectors #MarketOpportunity | |
| 1.1M views | 85% inspired | #SmartInvesting #CorrectionWindow | |
| YouTube | 980K views | 80% analytical | #PankajPandeyExplained #EquityOutlook |
Pandey advised investors to focus on earnings upgrades, management commentary, and sectoral tailwinds while making allocation decisions. He also cautioned against chasing momentum in overvalued global-facing stocks, especially IT and pharma, which may face margin pressures.
Investment Strategy Post Correction – Pankaj Pandey’s Recommendations
| Strategy Component | Actionable Advice | Target Investor Profile |
|---|---|---|
| Sector Rotation | Shift from global to domestic themes | Medium to long-term investors |
| Stock Selection | Focus on earnings visibility, ROCE > 15% | Value and growth investors |
| SIP Continuation | Maintain discipline, avoid timing market | Retail and salaried investors |
| Risk Management | Avoid leverage, diversify across sectors | Conservative investors |
| Tactical Allocation | Use dips to accumulate quality midcaps | Aggressive investors |
The ICICI Direct research team has also released a sectoral watchlist featuring top picks in banking, auto, infra, and capital goods. These include HDFC Bank, Maruti Suzuki, L&T, and ABB India, which are expected to benefit from domestic tailwinds and policy support.
As India navigates global volatility, the market correction is being viewed not as a setback but as a reset—one that allows investors to realign with the country’s long-term growth trajectory.
Disclaimer: This article is based on publicly available financial commentary, verified market data, and expert analysis. It does not constitute investment advice or stock recommendation. All quotes are attributed to public figures and institutions as per coverage. The content is intended for editorial and informational purposes only.
