Sandeep Bhatia, head of equity-India at Macquarie Capital Securities, is of the view that the correction seen in the market is healthy and a required one.

“Stick to largecap quality names in consumption, banks and IT and one would be fine through this phase," said Bhatia.

According to him, "Midcap correction can continue because the valuations had also reached never seen levels and the correction was required. Once all the political uncertainty is done with, it would be time to get into midcaps and take aggressive bets in the portfolio."

"The big macro theme for the next two years would be that cost of capital would move up globally and would impact valuations across the board and so midcaps would see some more correction. However, the good news is that economy is recovering and so we will be cushioned by earnings impact", said Bhatia.

According to him, staying invested in largecap tech stocks is a no brainer. "IT earnings would continue to be in the 14-15 percent levels and one could also see positive surprise come through," said Bhatia.

The house is also positive on ITC and consumer space as they expect volume growth for ITC to come back this quarter.

"Most FMCG companies expect the festive season to be much stronger than last year or two, he added. They also expect HUL to outperform on margin front. Some e-commerce companies as well could see good numbers with regards to topline," said Bhatia.

"From the financial space, the space is good if one were to confine to largecaps and high quality banks like HDFC Bank, ICICI Bank, Kotak Mahindra Bank etc. Any correction in Maruti is a buying opportunity given their product pipeline, manufacturing strength, distribution networks and trust in the brand," said Bhatia, adding that the house remains bullish on Maruti.

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