Best in midcap is over and the worst in the mid-cap stocks is also over. This has now become a normal market which is the best market to invest in as you now know the depth of the ocean, Vijay Kedia, MD, Kedia Securities, said in an interview with Moneycontrol’s Kshitij Anand.
Q) Much of the uncertainty is out of the way and 2019 will be an important year. What is your outlook for the coming year?
A) Uncertainty and market go hand-in-hand. One uncertainty goes away to leave space for the new one. The year 2019 would be there with some new uncertainties. Well, don't worry, and embrace it. Uncertainties are like opposition parties. They keep you awake and alert.
Q) After a straight 0-3 loss for BJP in Assembly elections, do you think Modi’s popularity is going down? Will it be tough for Modi to for the goverment again in 2019?
A) The popularity has been going down since past few quarters. Many people who had a blind love for the government have started raising their doubts. Now, coming to the question of 2019 elections being tough for them. Here is my view:
See, if you lose a county match before a world cup what would you do? Learn from your mistakes and play the game according to the pitch, and not according to your temperament. If you don't learn any lesson, then may God bless you!
Q) It looks like the government will doll out certain populist measures ahead of the polls to set the stage for the big day. Do you see this as a concern for D-Street?
A) I don't think so. However, sometimes populist measures are also necessary for democracy.
Q) Where is rupee likely to move in 2019?
A) I am not an expert. But, experts view is that rupee should stay between 68 and 75. Now 65/68 is the new base for the USD.
Q) The broader market remained under pressure in 2018. After the recent correction, do you think much of the froth is out and investors can again look at the mid and the smallcaps in the year 2019?
A) Yes, I think so. Best in midcap is over and the worst in the mid-cap stocks is also over. Now, this is a normal market which is the best market to invest in as you now know the depth of the ocean. The market will move on merits and not on sentiments.
Q) Top stocks you think are good buying ideas with a target price for the year 2019?
A) Everest Industries, Repro India, Sudarshan Chemicals Industries, Vaibhav Global, etc. in my biased view are doing well and moving into a high growth era. Having said that all my new or old holding are subject to ‘sell’ even before this article reaches out to you.
Q) What is the mood of FIIs… do you think the recent friction between the govt and the RBI will lead to some loss of credibility and weigh on sentiment?
A) Well, I don't follow FIIs very carefully. They had been a consistent sellers throughout this year. However, my biased opinion is that they will buy aggressively before the general election.
But, none of my investments are based on this opinion. This is just a speculation. In my view, whatever happened between the govt and the RBI, both will take lessons from it, and the credibility of both is not so fragile that in one incidence it will vanish.
Q) Is market pricing in Modi's returning to power in 2019? If not, then in case Congress come or we have a coalition government, do you think we could see more pressure?
A) There is always pressure in the market. When pressure is high then think the diamond is under process. This market is already under-owned, and even a trader of 10 shares says chances of Modi coming to power is uncertain and the market will not rise till then.
That's why I think the market will be strong before the election. People behave differently when they are in power and in opposition. I am comfortable with any govt. so far my investments are a concern.
Q) What are your targets for 2019 for Sensex or Nifty?
A) My targets are never met as I am very greedy when it comes to profits. That's why I never have price targets or time targets for my stocks or the index.
I am learning to flow with time and enjoy the journey of life. If your targets are not met this year they will be met next year.
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