The Economic Times
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| 29 November, 2020, 01:18 AM IST | E-Paper


    We have to be very well calibrated when we are looking at underpriced stocks in a bull market where everybody is trying to pick up better valuations, says Nimesh Chandan.

    Markets are at an all-time high because of that friendly genie from across the border -- the FII. Since April, they have brought in Rs 1,22,000 crore and mutual funds have sold Rs 35,000 crore. So I think the answer lies in that.

    One should identify companies that can benefit from the kind of challenges that Covid has posed, says Vetri Subramaniam.

    Reforms would be the need of the hour, especially in the financial market, says A Balasubramanian.

    There would always be correction even in a long term bull market: Navneet Munot of SBI MF

    As growth becomes more broad-based and the profit pool is shared by a larger set of players, we should see a lot more broad-based rally going forward, says Navneet Munot.

    "When we compare the amount of wealth that investors have lost in last two to three years in India due to governance fiasco, sour relationship with labor union, closure of plants, product alteration as against the expense involved towards commitment to environment and governance, we realize that such expenditures are necessary. "

    A large part of the PE re-rating that we discussed in May-June has already played out and increasingly it would be based on how earnings begin to play out across the markets, says Maneesh Dangi.

    A very strong case can be made to diversify investments into slightly more market-linked product categories, says Lakshmi Iyer.

    Naren said it is time to bet on sectors that have been depressed for over a decade and not on those that have already been rallying since the 2008 financial crisis.

    'Second wave of Covid 19 could lead to a correction, high volatility in the market'

    Cost control by corporates has been spectacular and larger companies have continued to gain market share, said Akash Singhania, Senior Fund Manager, Motilal Oswal Mutual Fund.

    The Nifty is trading at higher than long-term average multiples and it is possible for markets to show some volatility. It has become more stock specific in nature and bottom up stock picking is the way forward, says Shibani Sircar Kurian.

    For a better selection of companies or portfolios, one has to now look at 2023 and 2024 and have a long term focus on investment, says Nimesh Chandan.

    When mutual funds enter to buy, recovery will be more broad-based, says Sunil Subramaniam

    When you have valuation divergences, you will have to take the pain if you have a specific investment style, says S Naren.

    Some stocks like SBI, ITC might prove value traps: Harsha Upadhyaya

    Without the fundamental triggers, you can continue to look at valuations and hold in the portfolio, but they could turn out to be more of a value trap., says Harsha Upadhyaya.

    Retirement tops the agenda of readers. We reached out to Ajit Menon, CEO, PGIM India Mutual Fund, to find out his responses to the survey and how he plans to bridge the gap.

    Given that the size of the mutual fund industry is close to about Rs 11 lakh crore, Rs 3,000-4,000-crore redemptions per month is not very significant, says A Balasubramanian.

    Vinay Paharia is underweight on financials, consumer staples and consumer discretionary sectors due to weaker outlooks or richer valuations.

    Large companies dominate the economy and it is not possible for the broader markets to move unless the large-cap stocks participate, Rajat Jain, CIO, Principal Asset Management, tells ET Wealth. Read the expert's take on the current situation of the market and more.

    New Sebi norms make it easier to find risk-adjusted return of schemes: Swarup Mohanty of Mirae Asset

    Sebi has asked mutual funds to rename their dividend plans. The second measure, a comprehensive one, deals with product labelling and indication of risks associated with various categories. We reached out to Swarup Mohanty, CEO, Mirae Asset India, to decode the measures.

    The Economic Times