DSP Mutual Fund shifts to bullish stance on equities after sharp market correction.

DSP Mutual Fund shifts to bullish stance on equities after sharp market correction. Head strategist Sahil Kapoor highlights extreme valuations as a contrarian opportunity, with major private banks, IT companies, and FMCG names trading at levels last seen during the global financial crisis. The fund now recommends increased equity exposure, particularly in large-caps, citing a compelling risk-reward setup. Investors can potentially build portfolios with 15-16% return on equity profiles at valuations around 17 times or lower, despite subdued earnings growth of 8-10%. Market indicators show pessimistic signals with weak balance of payments and low stock participation above moving averages, creating the contrarian buying opportunity the fund is capitalizing on.