Last Updated : Oct 24, 2020 10:54 AM IST | Source:

Weekly dossier: Vikas Khemani, Tushar Pradhan, Deven Choksey and others on market, investment ideas

September quarter earnings, updates on the stimulus package and upcoming presidential elections in the US and reports on COVID-19 cases in Europe will remain on investors' radar.

The week ended on a positive note for the market benchmarks Sensex and Nifty amid bouts of volatility.

The Nifty50 rose 1.4 percent while the S&P BSE Sensex gained 1.7 percent in the week ended October 23 as compared to a 2.4 percent rally seen in the S&P BSE Midcap index, and a 2.35 percent rally seen in the S&P BSE Smallcap index in the same period.

Volatility usually remains high in the market during earnings season and we are witnessing that trend.


At this juncture, the Indian market has so many things to focus on. September quarter earnings, updates on the stimulus package and upcoming presidential elections in the US and reports on COVID-19 cases in Europe will remain on investors' radar.

Top voices of the market express their views on the market trend and the pockets of opportunities. Take a look:

Vikas Khemani, Founder of Carnelian Capital Advisors (to CNBC-TV18)

Most of the banks are well capitalised, to that extent it offers comfort. HDFC Bank has always been sort of standing out in terms of comparing their own business.

Our large core holding is ICICI Bank as there is a lot more catch-up that we are seeing in the last couple of years under the leadership of Mr. Bakhshi. From a risk-return perspective, we think ICICI Bank will deliver much better than HDFC Bank.

We think housing finance is a very solid space where the rates have come down, demand is about to pick up, we are seeing activity pick up in the real estate, so we own LIC Housing Finance which is a great risk-reward according to us if you want to hold from 3-5 years perspective.

Srinivas Rao Ravuri, Chief Investment Officer - Equities, PGIM India Mutual Fund (to CNBC-TV18)

Though things are much better than they were in the months of April, May and June, it is too early to assume that everything is back to normal. There is a need to be cautious.

As we get into the result season, at the fag-end is when we tend to see weaker numbers coming in.

There is clear stress in the system and banking and financials will see the impact of this. That is the reason we are underweight. That has contributed to our performance in recent times.

We are still keeping faith in the telecom space. Consumption space will do well too we feel.

Tushar Pradhan, CIO, HSBC Global Asset Management (to CNBC-TV18)

The market is in a very confusing state. The valuations have now almost reverted where it was pre-COVID.

My favourite concern here is that it is not going to be a uniform recovery.

Cement has been one of the more popular sectors throughout this downtrend. There are a lot of infrastructure projects and housing projects.

As the labour starts to return, you will see this pick-up in demand especially in the cement sector come first.

Seshadri Sen, Head-Research at Alchemy Capital Management (to CNBC-TV18)

There is a lack of visibility in earnings for FY22. The market needs to wait for a few more quarters before gaining confidence in earnings.

The cement numbers that have come through are certainly heartening and cement is a sector where ongoing data is reasonably available, most analysts know what production numbers are and what the prices are. We do see a lot of strength in the tech sector as well.

Deven Choksey of KRChoksey (to CNBC-TV18)

The economy unlocking process has definitely helped construction activities to be in momentum and many of the large projects are getting into execution.

The cost of the interest coming down is helping many of the companies in improving the margins. Players like Ramco Cement are relatively stronger, pan-India presence of companies like UltraTech Cement would stand a good chance.

ACC and Ambuja combined also stand a good chance. The larger the capacity, the better would be the opportunity, the demand growth is definitely giving a positive direction as far as business is concerned.

Sandeep J Shah, Managing Partner of Motilal Oswal Private Wealth Management (to CNBC-TV18)

PSUs is an interesting space, but you have to be selective. There is merit in looking at some of the PSUs with very strong and robust businesses.

They have very good dividend yields, they have good cash flows, and especially those where there is even some nominal earnings growth is the place that we would like to go.

So, yes, there is merit in looking at them. There will be a few storms for the tier 2 players and some of the public sector banks.

The top tier banks and NBFCs will hold up quite well.

The worst is behind for the residential space. A lot of the listed players incrementally are focusing on the mid-segment and the lower segment.

That is where some of the growth is coming back because the affordability of real estate has never been better.

Prakash Diwan, Market Expert (to CNBC-TV18)

This market until the US elections is going to be absolutely choppy and volatile. You will have melt-ups and melt-downs.

There is a lot of opportunity for people who are patient enough to buy but for traders, it could probably have another 5-8 percent kind of a move from here.

Vinay Sharma, Fund Manager of Nippon India Mutual Fund (to CNBC-TV18)

Valuations are now supportive for financials to do well over the medium-term. For two-three years, a good bunch of financials looks quite attractive to us.

The results yesterday and the management commentary after that have given some impetus to these stocks and if some of this commentary come true over the next few quarters, it could provide further impetus to this sector because markets are factoring much higher levels of both restructuring and delinquency over the next three-five quarters.

We believe that large private sector banks are the best placed today in the sector.

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.
First Published on Oct 24, 2020 10:54 am