Correction would give golden opportunity for investors to pick good midcap stocks, said Pradip Shah, chairman and founder of IndAsia Fund Advisors.

“They still have the ability to grow faster than the market and so selectively, there will be opportunities,” he said.

According to Shah, the consumer product companies are trading at higher multiples currently but, if there is a correction and some of those multiples get corrected, then they could be good bets.

Sector specific, he said IT space is doing well. Companies are transforming themselves and are now offering total solutions with domain knowledge, intellectual property rights, etc. and they are no longer just service providers. This change is getting reflected in profitability, sustainability of their businesses aided by weaker rupee.

However, going forward it is the elections which will drive the outlook for the market. Moreover, the oil at $76 per barrel and its impact on the current account deficit is also a big concern, said Shah, adding that if inflation goes up, then it is a spoil sport for everyone.