Connect with us

Hi, what are you looking for?


Stick to blue-chips and bet on these 2 themes this year: Ajay Bagga

Rural consumption and IT are the two themes that should work..

Rural consumption and IT are the two themes that should work this year, market expert Ajay Bagga tells ET Now.

Edited excerpts
Last week saw the last leg of Q4 financial earnings and we saw a slew of macroeconomic data also come in. There were the auto sales figures too. What do you make of the week at large?

Overall, it was a good week. It has been a good May. So, sell in May and go away did not really work. If you were invested, you harvested good gains. Overall, the market is showing a big divergence in terms of a lot of noise because of the politics, the tariff tantrum that Trump is continuously throwing, Korea, Venezuela, Iran — one or the other issue — is dominating the markets.

Having said that, there is convergent global growth. Indian economy is on the mend. The corporate earnings — if you take out banks, pharma and telecom – were pretty decent this quarter and this year we are forecasting more than 20% corporate earnings growth. The banks will see some amount of turnaround coming through and you will see pharma recovering as well.

Overall, I would say it is getting very difficult to ignore the noise. There is too much noise on the markets but if you stick with the fundamentals, you can still make money in this market. Indices might be flattish. Indices might stay in tight ranges but there is enough money to be made in sectors which are linked to consumption, the rural growth story and which are linked to an Indian economy which is finally turning around again.

We saw Mahindra & Mahindra deliver their Q4 numbers. Largely, the auto numbers for the fourth quarter have been good and even in April and May we have seen the momentum continue. How are you reading into these numbers while some of the companies have disappointed but largely across-the-board it has been a good set.

Yes very good and three points are to be kept in mind. One the CV cycle has turned over the last three-four months and we are seeing very good numbers. That is a good leading indicator into the economy. Second is the base effect of demonetisation and then GST will kick in by July. Next six months, you can expect very good numbers from the auto pack. Third, rural consumption is coming back. The two-wheelers growth has been very strong for the last couple of months. That is also pointing towards private consumption resuming especially in the rural economy.

Autos across-the-board stay a strong buy as we are expecting a bumper year. The valuations are good and they are running up very fast but still it is a good time even for fresh investment in the auto sector.

The preferred ranking would be the tractor makers first, then the two wheelers which have underperformed for the last few quarters and are now finally turning and then the passenger vehicles and fourth would be the commercial vehicles which largely has started playing out already and maybe will take a couple of quarters more. A lot of juice is left and tractors will continue to do well.

What are some stocks that you would like to recommend?

I do not talk about particular stocks, but the best way to build a portfolio for this year is to a) stay with domestic consumption. b) For the international rupee-dollar play, IT sector remains in sweet spot. So, go for consumer staples, automobiles. In cement, we have seen volume pick-up in April even though margins are going down. But if the volume continues, operating leverage comes in and we could see a kind of return of cement coming through and then the rural space — tractor makers, rural chemicals makers and the entire consumption theme comes in.

Stay with the blue chips. The small and midcaps are underperforming this year. So, better to stay with the blue chips among the consumption themes.

Also, finally we are seeing some revival in the IT business models. Given that they are very well-run, cash-rich companies with decent margins, if they get a tailwind then with a lower rupee vis-à-vis dollar they are going to do even better. IT would remain another focus sector for this year.

Original Article


ET Markets




  1. side effects of hydroxychloroquine 200 mg

    August 4, 2021 at 6:10 am

    plaquenil sulfate 200 mg how do i get hydroxychloroquine

  2. hydroxychloroquineEi

    September 1, 2021 at 2:24 pm

    plaquenil 200 mg doctors prescribing hydroxychloroquine near me hydroxychlor 200 mg

  3. PatrickSep

    September 1, 2021 at 4:02 pm

    cialis price buy cialis usa

  4. generic cialis

    September 2, 2021 at 6:57 am

    cialis online cialis online

  5. zithromaxeser

    September 15, 2021 at 4:09 am

    over the counter zithromax zithr zithromax coverage

  6. hydroxychloroquineEi

    September 19, 2021 at 7:04 am

    plaquenil pregnancy hydroxychloride medicine hydroxychloroquine sulfate 200 mg tab

  7. bactrim antibiotic

    September 27, 2021 at 3:27 pm

  8. modafinilweightloss

    September 27, 2021 at 3:27 pm

    adrafinil vs modafinil adrafinil vs modafinil

  9. nuvigilvsprovigil

    September 27, 2021 at 3:27 pm

    modalert vs modvigil order modafinil

  10. accutane side effects

    September 27, 2021 at 3:27 pm

    side effects of accutane accutane side effects

  11. hydroxychloroquone

    September 29, 2021 at 6:39 pm

    does hydroxychloroquine require a prescription does hydroxychloroquine cause heart problems

  12. pharmaceptica

    October 3, 2021 at 9:50 pm

    tadalafil generic

  13. provigiluses

    October 5, 2021 at 12:29 am

    modafinil 200mg provigil dosage

  14. prednisona

    October 5, 2021 at 12:29 am

    what is a high dose of prednisone buy prednisolone tablets

  15. buy accutane

    October 5, 2021 at 12:29 am

  16. buyprovigilonline

    October 5, 2021 at 6:40 am

    modafinil 100mg modalert reddit

  17. bactrim antibiotic

    October 5, 2021 at 7:12 am trimethoprim sulfate and polymyxin b sulfate

  18. roaccutane side effects

    October 12, 2021 at 12:28 am

  19. prednisonebrandname

    October 12, 2021 at 12:28 am

    cheap prednisolone prednisolone warnings

  20. bactrim ds 800 160

    October 12, 2021 at 9:38 am

    sulfamethoxazole side effects

  21. provigilcost

    October 12, 2021 at 9:38 am

    nuvigil vs provigil modalert 200

  22. accutane coupon

    October 18, 2021 at 4:34 am

    roaccutane accutane ipledge

  23. prednisoloneforcats

    October 18, 2021 at 4:34 am

    prednisolone vs prednisone prednisone tablets

  24. Fawadvatarbq

    October 18, 2021 at 1:29 pm

  25. Fawadvatxjza

    October 18, 2021 at 1:29 pm

    plaquenil reviews is hydroxychloroquine

  26. Fawadvatbxxa

    October 18, 2021 at 3:18 pm

    does hydroxychloroquine buy chloroquine

  27. Fawadvatlzfy

    October 24, 2021 at 9:40 am

    chloroquine hydroxychloroquine

  28. evilaxbqh

    October 24, 2021 at 9:41 am

  29. Fawadvathyqb

    October 24, 2021 at 3:55 pm

  30. Fawadvatrvud

    October 24, 2021 at 4:13 pm

    hydroxychloroquine 200 mg what is plaquenil

  31. Fawadvatwgbn

    October 25, 2021 at 1:52 am

    does hydroxychloroquine work

  32. Fawadvatgwrf

    October 30, 2021 at 4:29 pm

    hydroxychloroquine sulfate 200mg hydroxychloroquine moa

  33. evilazlod

    October 30, 2021 at 4:29 pm

    buy chloroquine online what is hydroxychloroquine prescribed for

  34. Fawadvatukku

    October 31, 2021 at 12:36 am

  35. Fawadvatygcn

    October 31, 2021 at 2:17 am

    hydroxychloroquine generic hydroxychloroquine clinical trial

  36. Fawadvatsixr

    October 31, 2021 at 5:50 pm

    hydroxychloroquine where to buy hydroxychloroquine interactions

  37. Fawadvatyyvi

    November 5, 2021 at 8:59 pm

    plaquenil for rheumatoid arthritis plaquenil retinopathy

  38. evilaovzl

    November 5, 2021 at 8:59 pm

    side effects of hydroxychloroquine hydroxychloroquine over the counter

  39. Fawadvatexfu

    November 6, 2021 at 11:32 am

  40. Fawadvatzqbj

    November 6, 2021 at 12:39 pm

  41. Fawadvatewgz

    November 7, 2021 at 5:23 am

    chloriquine chloroquine brand name

  42. Fawadvatewqy

    November 12, 2021 at 11:49 am

  43. Fawadvatdpfc

    November 13, 2021 at 4:43 pm

    aralen chloroquine phosphate generic name

  44. Fawadvatdnev

    November 14, 2021 at 6:25 am

  45. Fawadvatqqqb

    November 14, 2021 at 5:42 pm

    chloroquine buy online

  46. Fawadvatvaoe

    November 21, 2021 at 8:16 pm

    side effects for hydroxychloroquine chloroquine tablet

  47. evilaabuz

    November 21, 2021 at 8:18 pm

    chloroquine malaria plaquenil uses

  48. where can you buy zithromax

    December 21, 2021 at 10:46 am

    zithromax 250 mg buy zithromax online uk

  49. Fawadvattffl

    December 22, 2021 at 2:00 am

  50. zithromax z pak

    December 22, 2021 at 11:56 am

    buy zithromax online

  51. Fawadvatbhjc

    December 28, 2021 at 5:19 pm

    zithromax z pak

  52. zithromax z-pak price without insurance

    December 30, 2021 at 6:49 pm

    zithromax online canada zithromax pack

  53. Fawadvatukal

    December 31, 2021 at 3:50 am

  54. Fawadvatqmmf

    December 31, 2021 at 8:10 am

    cheap zithromax zithromax price

Leave a Reply

Your email address will not be published.