Moneycontrol
Last Updated : Oct 08, 2018 02:45 PM IST | Source: CNBC-TV18

Bull markets are very easy to spot; the trick is in picking bear markets: Shankar Sharma

"The trick is in picking bear markets because stocks have infinite room on the upside," Sharma said.

CNBC TV18 @moneycontrolcom

Shankar Sharma, Vice-Chairman and Joint Managing Director, First Global, spoke to CNBC-TV18 about his reading of the market and his outlook.

"I have seen bull markets, bear markets for a very long time. Bull markets are relatively very easy to spot, because stocks have a finite point up to which they can fall. Nothing goes to zero, not a market. At a point when time valuations will become very cheap and there is a uptick of fundamentals turning and you know that this is a beginning of a bull market particularly if it has come at the back of a couple of years of lull, sideways movement drifting down movement kind of. It is very easy to pick market. I think it is just a child’s play," he said.

The veteran trader also said it is very hard to predict the vagaries of the stock markets.

"The trick is in picking bear markets because stocks have infinite room on the upside. They keep going on and on and on and we have seen that in 2000 when I used to think that Infosys at 60 P/E was expensive because in India we had never seen 60 P/E ever before.

"So we thought that 60 is too high and then it traded finally at Rs 300. So, stocks can go up virtually infinitely. So, calling a bear market or figuring out that we are in a bear market or top of the market is very difficult," he added.

Source: CNBC-TV18
First Published on Oct 8, 2018 09:55 am
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