Moneycontrol

Budget 2021

Associate Partners:

  • SMC
  • Samsung
  • Volvo

Moneycontrol

Budget 2021

Associate Partners:

  • SMCSamsungVolvo
Webinar :Join an expert panel for a webinar on Smart investments for a secure retirement January 28, 2021. Register now!

Bajaj Finance, Kotak Mahindra Bank will bounce back strongly, says HDFC Sec's Dipen Sheth

"We will have to see how the coronavirus plays out before we take a call on what kind of damage they are going to face," the RBI said.

March 27, 2020 / 05:14 PM IST
 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

There is something much bigger than Reserve Bank of India (RBI), much bigger than stock market, much bigger than macros right now -- the human survival issue – that we are confronted with – is far more important than what is happening to micros and markets is the word coming in from Dipen Sheth, head of equity and strategic marketing at HDFC Securities.

"The worry right now is the pandemic which is rising every day. This is getting scary, we need a cure and we need it fast. Markets will gyrate on a daily basis, macros will look challenged and markets will run up when we have days like these when announcements and expectations run high and then suddenly some bad news will come out. I am told the next 8-10 days are very critical for India – markets will go up, markets will go down,” he said.

“We need to get a fix on what is happening here before we take a call. You can easily get hacksawed by the market. It is time to be a very disciplined trader, if you must trade otherwise sit back and enjoy the ride,” said Sheth in an interview with CNBC-TV18.

Talking about financials, Sheth said, “It looks like a very exciting time. You are going to see a textbook response very likely from the government and organs of the government such as RBI -- you are going to see fiscal easing and some of that was announced yesterday in the Rs 1.70 lakh crore package, there will see monetary easing and an interest rate cut today and of course regulatory easing, which is much more exciting from a stock market perspective."

According to him, banks will be given some leeway in terms of recognizing non-performing assets (NPAs) and some forbearance there, which should immediately translate into very good sentiments on the banks, which were the most battered and which were the most highly valued and were commanding the sexiest valuations with the highest possible growth rates.

Close

COVID-19 Vaccine

Frequently Asked Questions

View more
How does a vaccine work?

A vaccine works by mimicking a natural infection. A vaccine not only induces immune response to protect people from any future COVID-19 infection, but also helps quickly build herd immunity to put an end to the pandemic. Herd immunity occurs when a sufficient percentage of a population becomes immune to a disease, making the spread of disease from person to person unlikely. The good news is that SARS-CoV-2 virus has been fairly stable, which increases the viability of a vaccine.

How many types of vaccines are there?

There are broadly four types of vaccine — one, a vaccine based on the whole virus (this could be either inactivated, or an attenuated [weakened] virus vaccine); two, a non-replicating viral vector vaccine that uses a benign virus as vector that carries the antigen of SARS-CoV; three, nucleic-acid vaccines that have genetic material like DNA and RNA of antigens like spike protein given to a person, helping human cells decode genetic material and produce the vaccine; and four, protein subunit vaccine wherein the recombinant proteins of SARS-COV-2 along with an adjuvant (booster) is given as a vaccine.

What does it take to develop a vaccine of this kind?

Vaccine development is a long, complex process. Unlike drugs that are given to people with a diseased, vaccines are given to healthy people and also vulnerable sections such as children, pregnant women and the elderly. So rigorous tests are compulsory. History says that the fastest time it took to develop a vaccine is five years, but it usually takes double or sometimes triple that time.

View more
Show

"So all the shining boys of the financial world are going to be back in fashion – Bajaj Finance, Kotak Mahindra Bank, let alone my own parent bank. It is just that there is going to be a massive reflation of sentiment. It is a great time to be a trader,” he said.

If I am morphing into a ruthless and emotionless trader today, I would take money off the table at every rise but if I am a long-term investor and if I have already got a lot of money stuck in the markets, I will wait for them to come back to a certain level, he advised.

"As a message for long-term investors – who have suddenly been hit by the 30-40 percent rocket, if you are already allocated into equities, take it easy,” he further mentioned.

Speaking about COVID-19 impact on the markets, he stated, “We will see more disruption before we see repair. That is the time to watch out for how industries are going to move fundamentally. Industries like automobiles are terribly integrated in their global supply chains, so are chemicals, so are whole lot of other industries such as capital goods, hi-tech manufacturing. Service sector firms like hotels and hospitality, airlines and travel are by definition globally integrated."

"So, we will have to see how the coronavirus plays out before we take a call on what kind of damage they are going to face. Right now, most of the stock market crack is about anticipatory damage on their business. It would be hazardous to make guesses," he said.

 

Source: CNBC-TV18
Moneycontrol News
first published: Mar 27, 2020 05:14 pm

stay updated

Get Daily News on your Browser
Sections