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“In the case of the insurance sector, APE growth is going to be the key driver and if growth does come back over the next few months and we start seeing signs of that, the valuation, especially where life insurance is concerned, appears to be fairly attractive. We would incrementally start evaluating this sector given the growth valuation dynamics.”

The IPO is entirely a fresh equity issue of Rs 2,800 crore. This is the first IPO from a JSW Group company in 13 years after JSW Energy listed in 2010.

“Many of our long-term positions still are intact and even banking names or even non-banking PSU names in various pockets are still looking attractive. Earnings are still catching up and multiples are only at about 18 times. That means there is sufficient room to run.”

Mayank Mehra, smallcase, manager and principal partner at Craving Alpha,believes that strong economic growth prospects, attractive valuations, and government reforms could support foreign investment flows in the next month.

Stocks that were in focus include names like Gujarat Ambuja, which rose 6%, Berger Paints closed with gains of more than 6% to hit a fresh 52-week high and Indian Bank, which closed with gains of about 4% to hit a fresh record high on Friday.

​Tata Motors DVR has an operating revenue of Rs 3,76,268 crore on a trailing 12-month basis. The company has an outstanding annual revenue growth of 25%, a pre-tax margin of 1%, and an ROE of 5% needs improvement. The company has a high debt-to-equity of 196%, which can be a reason to worry.

From the top-10 pack, Reliance Industries, HDFC Bank, ICICI Bank, Infosys, ITC, State Bank of India, Bharti Airtel and Bajaj Finance were the laggards while Tata Consultancy Services (TCS) and Hindustan Unilever were the gainers.

“More people are selling these bonds than buying them. So we could get trapped into a credit spiral and any kind of unforeseen event, a bankruptcy or a blow up in a hedge fund will turn everybody very cautious and people will run for exits and the crowded exit will lead to a lot of pain.”

Foreign portfolio investors, which turned sellers in the domestic market early this month, remained so in the week gone by. So far in September, they have net sold Indian equities worth Rs 10,164 crore, according to NSDL data. In the cash market, FII sold shares to the tune of Rs 18,260 crore, so far this month.

Despite the corrective decline, the volatility index, as represented by India VIX, did not rise. In fact, it declined marginally by 2.20% to 10.66 on a weekly basis. This continues to keep the markets vulnerable to incremental corrective retrenchment.