Even as 2022 saw massive headwinds on the macro-economic level, Sunil Singhania, Founder of Abakkus Asset Manager LLP, believes these could turn into tailwinds in the coming year.
Inflation might cool down while interest rate cuts are on the cards soon along with the reopening of China which is seen driving demand. Hence, from the global front, headwinds are turning into tailwinds, Singhania elaborated at a Crystal Gazing Summit and Awards 2023, organised by PMS AIF WORLD.
PMS AIF WORLD, is a new-age investment services online platform focused in the space of alternative investments offering analytics and strong content backed quality investment solutions to the HNIs, UHNIs & NRIs.
As far as India is concerned, he believes India will continue to grow at a decent pace.
Singhania sees a flattish interest rate scenario with the opening up of trade being played out and believes that it will continue to remain a fairly growing economy. He said that better macro-economic conditions would only aid the Indian economy as compared to the global scenario where the headwinds have turned into tailwinds.
Meanwhile, talking about generating alpha, the market veteran said not chasing momentum has worked well for him.
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He believes one should invest in profitable companies and businesses that see profitable growth. He is of the view that loss-making companies should be avoided but suffered in 2021 and early 2022 because of this principle as shares of several loss-making companies spiralled upwards irrespective of the valuation and profit.
Even as he sees the year ahead to be better for India, he cautioned that there will be challenges.
There will either be a massive time correction, which has happened in companies like ITC, Hindustan Unilever, Colgate Palmolive and whirlpool for so long, or there will be price correction. There could even be a combination of both.
In the last one year, the market has been witnessing both time and price correction, says Singhania.