Mumbai, Apr 17 (IANS): Market correction due to Covid resurgence is an opportunity to add cyclical stocks said Motilal Oswal Financial Services.

In a report, MOFSL said resurgence in second wave of Covid-19 has led to elevated market volatility and correction.

Lately, both Nifty and Bank Nifty are down 5 and 15 per cent from their recent highs, respectively.

"To contain the pandemic, several states have announced localised restrictions with Maharashtra yesterday unveiling set of broad-based measures for two weeks mini-lockdown,"

"We expect the set of restrictive measures to impact near-term economic recovery till cases stabilise. However, key government authorities and policymakers have ruled out national lockdown."

Consequently, MOFSL recommend that correction should be viewed by the investors as a buying opportunity and advocated adding a balanced mix of growth, cyclicals and defensive stocks in their portfolios.

"We continue to be 'OW' on the BFSI, IT, Metals, Cement and Capital Goods, Neutral on Consumer, Auto and Pharma while staying 'UW' on Energy, Utility and Infrastructure."

On the bright side, it said that vaccinations are gradually beginning to accelerate.

"As vaccination pick up further with approvals for more vaccines now in place, we expect the focus to shift back to growth, cyclical recovery and fundamentals."