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Avenue Supermarts looks attractive on dips: Amit Jeswani

Stallion Asset is highly underweight on IT services, overweight on Indian banks, has added two listed fintech companies and is looking to add hospital stocks, says the founder of the portfolio management service company

March 23, 2023 / 15:33 IST
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Avenue Supermarts is a stock to buy on dips, said Amit Jeswani, founder of Stallion Asset. Avenue Supermarts forms 3-4 percent of Stallion Asset’s total holdings and the founder may look to buy more of the stock on dips. The company could grow 25-30 percent for the next five to seven years, Jeswani said in an interview to Moneycontrol.

Stallion Asset, a portfolio management service company, is highly underweight on IT services. It is overweight on Indian banks and prefers the top three or four private banks. It has added two listed fintech companies and on the pharma side, it is looking to add hospital stocks. Edited excerpts:

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What is your reading of the US Federal Reserve’s rate hike stance and underlying tone, combined with Janet Yellen's comments, for the Indian equity markets?

We're not in the business of predicting so much, but reacting to information. The two-year bond yield of the US Treasury is now below 4 percent. It is very clear that the markets are expecting a pivot. See, the market doesn't follow the Fed. The actual thing is the Fed follows the market. The markets were the first ones to say that the Fed will hike the one-year bond yield. The two-year bond yield was rallying way before the Fed actually increased rates. Even on the downside in October 2022, the 10-year bond yield peaked. This month, the two-year bond yield has peaked. And Bitcoin has moved higher. Basically, inflation has peaked long term at 9.1 percent. Two percent is the Fed's goal. We are at 6 percent. That trend is lower.