Where are you shopping this festive season Both e-commerce websites and Dalal Street are offering jaw-dropping prices.

So, the choice is between buying products that may not last long and picking up a few stocks that may throw up big returns in a few months from now. Market experts say the Indian market is largely done with the current phase of correction, though volatility may remain high till the end of January at the least.

Arun Thukral, Managing Director and CEO, Axis Securities, is advising investors to do some shopping on Dalal Street.

“The great Indian equity sale is on now,” Thukral said in an interaction with ETNow. On a year-to-date basis, the BSE500 index has lost nearly 9 per cent, whereas the BSE Midcap and Smallcap indices have tumbled 20 per cent and 28 per cent, respectively, till October end. BSE500 index represents over 92 per cent of the total market capitalisation on BSE. “The good part about this market is that some of the factors, including currency depreciation and high oil price which were creating a problem, have somewhat reversed, which is good news from a micro perspective,” says Taher Badshah, CIO-Equities, Invesco Mutual Fund. “We have not yet seen as much normalcy as far as the credit market goes.

However, some of the measures taken by the government and RBI seem to be having an effect to help stabilise the system for now.

There is a possibility of some relief and a bounceback.

However, things are likely to stay volatile over the next three months and we are getting to a stage where valuation may look more reasonable from a one-year forward basis and that should provide support to the market,” Badshah said in an interaction with ETNOW. After the strong selloff seen since August-end, valuation of Nifty has come to 24.65, which is very close to its five-year moving average of 22.82. Equity benchmarks Sensex and Nifty have corrected over 10 per cent from their respective all-time high levels hit in August.

In the BSE500 pack, 282 stocks were trading below their industry P/E as of October end.

That doesn’t mean you just go and buy a stock, which could trading below their industry PE or long-term averages.

Investors should consult financial advisers and read about the company as well as industry before taking any position.

In the BSE500 index, Bata India, Mahindra Holidays, VA Tech Wabag, Just Dial, Ajanta Pharma, Natco Pharma, Granules India, Colgate-Palmolive, Ashok Leyland, DCM Shriram, DHFL, Rallis India and Kaveri Seed are among the stocks whose price-to-earnings ratio have fallen below industry averages. Market mavens believes corporate earnings growth is also recovering after a long hiatus, and that will be the driving force for the market going forward, and that will also guide the market trajectory and returns. Sampath Reddy, Chief Investment Officer of Bajaj Allianz Life Insurance Company said corporate earnings are showing signs of recovery after muted growth in last few years. “We feel some of the sectors, which have been a drag on corporate earnings in the past few years, may have bottomed out.

Therefore, we expect corporate earnings growth to rise to mid-teens in FY19 and FY20,” he said. A couple of important global and local events lined up over the next three months will keep the market volatile.

Market watchers will be watching the outcome of assembly elections in India, which could give some idea about the shape of things to come at the general elections due early next year.

Markets will also be observing the November US elections, as they may have a bearing on the US-China trade tensions. “Over the next two-three months, we would like to see some movement in the NBFC space as well, or probably in the overall credit market.

We may probably hear a little about Brexit.

The market should settle down in the next two-three months after which we will be able to take a call on its direction,” Badshah said. He said this is a good opportunity to buy stocks.“We have become a little more constructive on the midcap and smallcap segments.

We think valuations have corrected meaningfully out there.

They are not cheap, but they are still lot more reasonable than what they were a year ago or maybe 18 months back.

We are trying to nibble these opportunities.

Some of our own existing ideas have, of course, taken a beating.

We have taken the blow on the chin, but they are looking a lot more attractive now.

So we are happy to buy into some of those names as well,” he said. If you are looking to pick some stocks after the recent correction, Axis Securities has recommended Ashok Leyland, Bajaj Finance, HUL, ICICI Bank, LT Infotech, Minda Industries, Mold-Tek Packaging, Reliance Industries, Steel Strip Wheels, Titan and Trident. HDFC Securities recommends Everest Industries, Parag Milk, Cummins, Apollo Hospitals, Exide, Sun Pharma, Cyient, ICICI Bank, Dr Reddy’s and Hindustan Oil Exploration with a one-year perspective.

Ashok Leyland, Asian Paints, Britannia Industries, Cummins India, Godrej Consumer Products, Maruti Suzuki India and Voltas are among the top picks of Religare Broking.