Pre-Budget Market Sell-Off: Where to Find Value Amidst Volatility?

• Indian markets experienced a significant pre-Budget sell-off, with Sensex crashing nearly 2,500 points and Nifty 50 falling over 775 points this week, pushing volatility to a June high.
• Analysts attribute the correction to global geopolitical uncertainty, FII outflows, and Budget proximity, rather than weak Indian business fundamentals.
• Citi Research favors defense (Bharat Electronics) and affordable housing (Aavas Financiers, Aadhar Housing Finance) themes, expecting continued government focus on public capital expenditure.
• Other attractive sectors highlighted include FMCG, healthcare, quality large-cap financials, PSU banks, infrastructure, and railways, offering value for long-term investors.
• Experts advise investors to avoid panic selling, focus on companies with strong balance sheets and earnings visibility, and consider ETFs for diversified exposure during this volatile period.

Why It Matters: Market volatility before the Budget creates selective value opportunities for long-term investors in resilient sectors.