Weekly dossier: Basant Maheshwari, Ramdeo Agrawal, Shankar Sharma and other top market voices

Midcap IT space is very interesting and India has a clear edge over there, said Ramdeo Agrawal, Chairman, Motilal Oswal Financial Services

August 29, 2020 / 09:36 AM IST

Hopes and concerns are going hand-in-hand in the current scenario. COVID-19 cases are rising, macroeconomic indicators are flashing signs of deep stress and the market is surging higher.

Many investors think they understand the market to a fair extent. This market is a test of their belief. There are contrasting voices. Some say, "I see a correction". Some counter it, "I see the market at record high by the end of the year."

Amid all this clamour, top voices of the market express their views on the economy, market and art of investing. Take a look:

Basant Maheshwari, stock market expert (to CNBC-TV18)

The market creates careers, it creates lifestyles, and it creates history. The success of an investor lies in what he sees as success as a trader.

Close

It is not a question of success, it is a question of satisfaction and what satisfies you.

If you are satisfied with Rs 5,000 a day, maybe the stock where you have just sold off thinking you have made your Rs 5,000 for today, if held, could make you Rs 5 crore for the next 5 years or maybe the next 3 years also. So, when you put a mental cap on how much you want to make, you are actually closing yourself to a very long journey.

Never shy away from a stock that is making new highs. One should avoid the stocks that are making new lows and look at stocks that are making new highs.

A stock that makes new highs is telling you that there is something in the price that you don’t know.

Ramdeo Agrawal, Chairman, Motilal Oswal Financial Services (to CNBC-TV18)

Midcap IT space is very interesting and India has a clear edge over there.

I spoke to a lot of people, they are saying that they have done more business in four months than they have done in the last year.

I think the next five-six years are going to be far more promising for them.

Shankar Sharma, VC & Joint MD, First Global (to CNBC-TV18)

Even debt, if bought wisely, can give you solid returns. When you are diversified you won’t get wiped off, you won’t get cleaned out because something will save you.

US treasuries saved us then and we are thankful for that. Right now the pie is pretty well-diversified.

Vikash Kumar Jain, Senior Analyst, CLSA (to CNBC-TV18)

August may see the highest monthly FPI inflow in over 10 years.

India has anyways been a favored market if we were to look at other emerging market peers in terms of FPI inflows.

The market will start getting more stock-specific from hereon and there will be movements from one sector to the other.

Arvind Sanger, managing partner, Geosphere Capital Management (to CNBC-TV18)

Realty stocks are probably a better hedge against inflation. These stocks have been terrible performers over the last several years, therefore there could be some value here.

On the other hand financial stocks could benefit from a steepening of the yield curve but they do have substantial loan losses and there is no clear path forward in India as to either the size of the loan loss reserves coming or the timing, so right now it is a risk on market.

Mary Manning, portfolio manager at Ellerston Capital (to CNBC-TV18)

The long-term structural growth story of India is still intact. That is why we continue to invest in India.

I have a very strong bias towards large-cap stocks because as a foreign investor, we know that India can be volatile and when liquidity dries up, those very high beta smallcap and midcap stocks can damage your portfolio.

So, I generally stick with large-caps and Infosys and Tata Consultancy Services (TCS) are the two largest IT services stocks in my portfolio.

Viktor Shvets, Macquarie (to CNBC-TV18)

India has done better than ASEAN, places like Taiwan, Malaysia, Philippines or some of the weaker EMs like Brazil, South Africa, Turkey or Russia.

India never looks attractive on the regional or global basis from a valuation perspective.

It is going to be the thirteenth year in a row of declining earnings. It is the promise of India and a select few pockets where Indian businesses actually do have competitive advantages that keep investors invested in India.

Chetan Seth, Nomura (to CNBC-TV18)

The sharp recovery in demand from a low base is all pent-up demand. From here on, the recovery is going to be slow.

It is quite possible that the spike in inflation is temporary and will eventually decline across the board. So I would expect that in the next few months or quarters, inflation should be on a downtrend.

Disclaimer: The above report is compiled from information available on public platforms. Moneycontrol advises users to check with certified experts before taking any investment decisions.
Nishant Kumar
first published: Aug 29, 2020 09:34 am

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