The market is just witnessing a correction, on account of year-end profit booking by the FIIs, says Manish Sonthalia of Motilal Oswal Securities, on CNBC-TV18. So December may be a subdued month for the market, but January will see fund flows coming back, he adds. The key sectors to be overweight on are infrastructure, power, finance and real estate, he says.

Europe opens in the positive while the Asian markets have taken a tumble. The intense global volatility is affecting the Indian market that continues to slide. The Sensex is currently trading at 18933, down 347 points while Nifty is at 5678, down 102 points from the previous close. The BSE Midcaps Index that was looking resilient till now has crumbled and is down by 1.5% The market breadth is negative with advances at 316 against declines of 874 on the NSE.

In the financial services space, Kotak Mahindra Bank and Indiabulls Financial are good stocks, says Manish Sonthalia, VP, Motilal Oswal Securities, on CNBC TV18. The high multiples in this sector will be maintained and one can expect a growth of 25-30% going forward, he adds. Kotak Mahindra Bank is currently trading at Rs 1113, down 2.5% and Indiabulls Financial is trading at Rs 803, up 0.57% on the BSE.