Vaibhav Porwal, Co-founder of Dezerv, believes the recent correction in Indian equities is creating opportunities for investors to accumulate quality businesses through a disciplined investment strategy. While the Nifty 50 declined 6.1 percent in September and was down nearly 13 percent in 2026 at the time of his assessment, Porwal cautioned against attempting to predict the exact market bottom.

He said investors should consider staggered capital deployment into high-quality businesses rather than waiting for complete macroeconomic clarity. According to Porwal, strategic asset allocation can help investors participate in a potential market recovery while managing near-term risks arising from global uncertainty.

Porwal attributed part of the pressure on Indian equities to rising global bond yields, which have increased the cost of capital and made foreign investors more selective about emerging markets. Although foreign institutional investors have continued to withdraw funds from Indian equities, domestic institutional investors have provided support. He said this divergence highlights the importance of maintaining a balanced portfolio rather than relying exclusively on equity market performance.

On valuations, Porwal noted that the Nifty 50 was trading at a 16 percent discount to its long-period average, according to Motilal Oswal. He believes large-cap stocks are becoming increasingly attractive because established market leaders generally have stronger balance sheets and greater capacity to withstand economic stress. However, he acknowledged that valuations could decline further if market panic intensifies.

Porwal recommended a structured, multi-tranche investment approach for investors holding fresh capital. He argued that waiting for positive headlines and a complete resolution of global uncertainty could mean missing a significant portion of a market recovery, as equity prices often anticipate improving conditions before they become evident in economic data.

He also emphasised the importance of earnings revisions when evaluating investment opportunities. August earnings estimates showed improving expectations for sectors such as cement and non-banking financial companies, while estimates for consumer and automobile companies were reduced. Porwal cautioned that a significant decline in a stock's price does not necessarily make it attractive, as the correction may reflect deteriorating business fundamentals. Instead, investors should prioritise companies with pricing power, expanding margins, durable cash flows and resilient earnings prospects.

For mid-cap and small-cap stocks, Porwal advocated a selective approach because valuations remain above historical averages despite the broader market correction. He recommended a core and satellite portfolio structure, with large-cap market leaders forming the core allocation and carefully selected smaller companies providing additional growth opportunities. Investments in the broader market, he said, should be restricted to businesses whose earnings potential adequately supports their valuations.

Porwal further advised investors to look for tactical opportunities when broad sector sell-offs unfairly penalise fundamentally strong companies. Businesses with transparent revenue streams, strong balance sheets and sustainable pricing power could offer more attractive opportunities than companies dependent on speculative turnarounds.

Currency movements and global interest rates remain additional factors for investors to monitor. Porwal said rupee weakness should be assessed in the context of the Reserve Bank of India's approach to orderly currency adjustment and measures such as the Real Effective Exchange Rate. He cautioned against allowing short-term currency volatility to dictate long-term investment decisions.

The rise in the US 10-year Treasury yield above 5 percent, according to the market conditions discussed, has also increased the global cost of capital and placed pressure on equity valuations. Porwal believes India's domestic consumption, structural growth prospects and corporate balance-sheet strength continue to support the long-term investment case. He suggested combining accrual-oriented debt strategies with bottom-up equity selection to balance income generation and growth exposure.

Concluding his assessment, Porwal advised investors against waiting for every macroeconomic indicator to turn positive before increasing equity exposure. Rather than attempting to identify the exact bottom, he recommended disciplined asset allocation, gradual capital deployment and a focus on business fundamentals to navigate the ongoing market correction.