NEW DELHI: A solid bounce followed by a crash to extreme lows and then a steep climb! The domestic stock markets roller-coaster ride over the past three days had investors on their toes. Looks like, the bulls are telling the bears, enough is enough.
After logging losses for five consecutive weeks, the benchmark indices finally managed to end this week in the positive terrain, despite a major selloff in equities globally.
This seems to have given some optimism to Dalal Street; or at least that's what the Twitter activity of some of the top names in the market suggests.
Crude oil slipping to near $80 came as a big surprise as did the strengthening rupee. But before we begin a new week and see how the market reacts to the CPI inflation and IIP data, here's a look at what D-Street mavens talked about on Twitter.
Smallcap czar Porinju Veliyath came out with all optimism. He says the worst is behind us and all that remains to be seen is a recovery in stock prices. Porinju tweeted to his followers to keep an eye on buybacks and creeping acquisitions.
Time to keep an eye on buy-backs and creeping acquisition. After the price correction, panic & extreme pessimism, w… https://t.co/PNE2tqKnmG
— Porinju Veliyath (@porinju) 1539093755000
Sandip Sabharwal, an independent adviser at asksandipsabharwal.com, had similar views to offer. With a lot of macro data looking up, he expects the tides to turn in favour of equities.
Views can flip suddenly Vicious cycles can become Virtuous cycles -Crude down 8% from the top -INR topping out -Bon… https://t.co/VbDBZdjalR
— sandip sabharwal (@sandipsabharwal) 1539273986000
And thus, he makes a case for buying stocks cheap. His mantra is to buy stocks when there is fear in the market.
Expected returns from stock markets over the long term are 15-20%. So many high quality stocks are so cheap now. If… https://t.co/uiYjPZsURF
— sandip sabharwal (@sandipsabharwal) 1539151407000
Safir Anand, too, is optimistic about the Indian market, more so ever since IMF retained its strong outlook for India.
Given that china has been downgraded by JPMorgan, Venezuela is in crises, Pak seeks bailout, IMF has maintained ind… https://t.co/ig7JChmHnB
— Safir (@safiranand) 1539141547000
Since most people are chiming that stocks are available cheap, the next big question is what to buy? Well, we have that covered.
Sandip Sabharwal is telling you to buy auto and NBFC stocks, and Nirmal Jain, founder & chairman of IIFL, and Basant Maheshwari, co-founder Basant Maheshwari Wealth Advisors, too are leaning towards these sectors.
The big fear around consumer goods purchase slowdown including Autos was around NBFC liquidity issues. With Governm… https://t.co/VVdPuLma0M
— sandip sabharwal (@sandipsabharwal) 1539143704000
No NBFC, other than IL&FS has actually defaulted or shown any sign of distress or liquidity issue till now. Yet so… https://t.co/ciwtXBBscX
— Nirmal Jain (@JainNirmal) 1539078208000
So NBFC isnt quite the new dirty four letter word ? Lets see what the commentators have to say on this now? Neech… https://t.co/8HN8C8jsCz
— Basant Maheshwari (@BMTheEquityDesk) 1539154306000
Safir Anand believes there is value in midcap IT names, but wants you to steer clear from the largecap ones.
See value in select mid IT names but not so in large IT https://t.co/YCDNHC4aX4
— Safir (@safiranand) 1539323363000
Sabharwal is telling you to keep an eye on TCS though, as he thinks it may prove to be a good opportunity soon.
For those intrigued by TCS Stock price move after results Nothing wrong with the results and outlook. Its just th… https://t.co/kRU4MRvAxJ
— sandip sabharwal (@sandipsabharwal) 1539317851000
He also asks investors to stay off offshore or US-focused funds as he thinks the worst of rupee fall and US outperformance over EMs might be behind us. And he says DMart might also be a bad choice if one is looking to buy it.
Lot of advise is coming these days on Investing in Offshore /US focussed funds showing the spreadsheets of last one… https://t.co/zd9vWspN6G
— sandip sabharwal (@sandipsabharwal) 1539050829000
Abnormally priced stocks i.e PE ratios >70 cannot sustain as growth slows down. We saw that in #Symphony as prices… https://t.co/KLUZmH2Gde
— sandip sabharwal (@sandipsabharwal) 1539431148000
Beyond equities, yellow metal seems to be emerging as the choicest asset class going into 2019.
The stability of GOLD prices amidst the entire market volatility is intriguing. The prices just don't move. It refl… https://t.co/9xXINGboGP
— sandip sabharwal (@sandipsabharwal) 1539231455000
To sum up, the market will keep at its game of highs and lows, but what you need to do is sit back and relax. Thats what Safir Anand is suggesting. He says he is eyeing the fashion week finale.
Enjoy the weekend guys. We all need to chill and enjoy things beyond markets. Music, food, movies, head massage….… https://t.co/TUcR3jjawB
— Safir (@safiranand) 1539410731000
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