Is it a good time to buy shares?

The markets hitting the lower circuit on Monday has come as a boon to investors to grab shares, say analysts.

"The market p/e has in a few days come down to 14 from above 18 levels. Anything below 15 is considered cheap and investors should utilise this oppurtunity to get in," IL&FS head of Western Region and Karnataka Shashi Bhushan said.

The stock market began a sharp slide on margin pressure forcing investors to sell off. There were also sales of shares against which loans were taken, since their values had eroded 25 to 30 per cent in the recent corrective dip, he said.

The arrival of arbitrage options earlier than expected had also contributed to the fall. Mutual funds were also feeling redemption pressures on the day.

"We have moved in sync with the global emerging markets, our fall accentuated by a more vibrant derivative segment. The markets are attractive now and investors who are ready to wait for more than three months can start buying now, provided they are willing to see lower prices in the interim period," HDFC head of securities Deepak Jasani said.

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