"The year 2022 started with a lot of global choppiness on account of Fed and geopolitical risks. Hence, companies are trying to be opportunistic to delay IPOs. Government is determined to get the LIC IPO out, and so it is unlikely to get delayed," says Vaibhav Agrawal, CIO & Founder of Teji Mandi.
As per the reports, life insurance behemoth LIC IPO is likely to be launched in the second week of March.
In terms of investment, "investors should have large private sector banks in a portfolio now, as large private sector banks are in a good position. They are likely to provide steady, calibrated years in the times to come," says Agrawal who is a seasoned professional with over a decade of expertise in stock picking and generating index-beating returns.
Two sectors that outperformed others in the last one year are Metals and Power that gained more than 50 percent. Do you still expect value in both segments or should one be selective?
You would have to be selective in metals. Would prefer non-ferrous metals like aluminium.
Can you name one sector that must-have in everyone's portfolio now, and why?
Investors should have large private sector banks. The NPA (non-performing assets) cycle has consolidated after six-seven years, credit growth is coming out of cyclical lows, NIMs will improve on account of lower systemic liquidity and higher risk appetite of banks and are available at reasonable valuations.
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The pipeline of IPOs was very big at the beginning but in the current year 2021 so far we have only three IPOs. Why is it getting delayed and do you think the same reasons could delay the LIC IPO?
2021 was a great year for capital markets, and the IPO market was quite frothy. 2022 has started with a lot of global choppiness on account of Fed and geopolitical risks. Hence companies are trying to be opportunistic to delay IPO. Government is determined to get the LIC IPO out, and so it is unlikely to get delayed.
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In the last one year, the private banking space underperformed the PSU banking segment. Should one go for private banks over PSU banks now?
Yes, large private sector banks are in a good position. They are likely to provide steady, calibrated years in the times to come.
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Technically, several stocks are under 200-day simple moving average and even Nifty itself is below 200 DMA. What is the importance of 200 DMA and should one buy these stocks?
A 200-day simple moving average indicates that the stock price is below its 200-day trend, which is almost 5-6 months. This indicates that the market has undergone a healthy correction, and hence it is a good opportunity to enter fundamentally sound stocks.
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What is the best preference for investment - Value, Growth or Dividend yield stocks, if one wants to build a portfolio now?
As Mr. Warren Buffett says, value and growth are joint at the hip and hence there is no real distinction between the two. Growth is an intrinsic component of value. Just because a company has a high dividend yield, doesn't mean that it is worth buying. Once should look at the company's prospects, calibrate the risk-reward and then look to buy it.
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