NEW DELHI: A global selloff in equities, growing domestic macro concerns and uninspiring earnings have created a bitter pill that the bulls had to swallow as they took to bed for the second straight week.
The markets volatile ride didn't go unnoticed. In some 240 characters, Dalal Street mavens tried to sum up what went amiss, what could be done and where all of it may be heading.
Samir Arora of Helios Capital compared our market to a roller-coaster ride.
Why waste money going to amusement parks to try latest roller coasters? Just come to our market.
— Samir Arora (@Iamsamirarora) 1540374626000
Safir Anand's optimism stayed firm, even when the market was reeling under a global equity rout.
The bulls are resting They don't quit
— Safir (@safiranand) 1540492386000
Anand also took a dig at the movie Bazaar, comparing it with what is actually happening in 'bazaar'.
Wonder if it was the right time to release the film Bazaar when no one wants to see the share Bazaar
— Safir (@safiranand) 1540543991000
With RBI stepping up efforts to ease liquidity crunch with two back-to-back OMO purchases, things might look for up the market. That is what Sandip Sabharwal, independent market advisor at asksandipsabharwal.com, seems to believe.
RBI steps up the liquidity peddle To do OMO purchases of Rs 40000 Cr in November after Rs 36000 Cr in October. If… https://t.co/Th6puSaod5
— sandip sabharwal (@sandipsabharwal) 1540555931000
Sabahrwal had quite a few stock-specific tips to dispense with. Take a look:
1. HDFC Bank – The private sector lender came out with its quarterly results last Saturday, after which a few brokerages came out with a sell rating on the stock. However, Sabharwal doesn't find anything wrong with the results. After a time & price correction, the stock isn't as expensive anymore, says he.
There are some brokerages who have come out with a SELL on HDFC Bank post results. Analysts hooked on the Price/BV… https://t.co/CrSpmSxtdI
— sandip sabharwal (@sandipsabharwal) 1540185005000
2. NBFCs – The men vs the boys: Sabharwal has just one advice on the NBFCs. "Don't try to buy cheap in this sector, buy right.”
Men Vs Boys becoming visible in the NBFC Sector. Three strong Men have reported over the last two days. They see ma… https://t.co/waRYLC9U2F
— sandip sabharwal (@sandipsabharwal) 1540398533000
3. Real Estate sector – Sabharwal is of the view that the real estate sector is likely to churn out some sure-shot winners in next 2-3 years. So, keep an eye out for this one.
With the NBFC issues on developer funding, court interventions in defaulting builder issues combined with RERA ther… https://t.co/NAVx5neNCM
— sandip sabharwal (@sandipsabharwal) 1540439911000
4. IL&FS's never-ending fiasco – The recent trend has been that any name associated with IL&FS is getting tainted.
Any stock that you want to fall, just say Blah, blah, blah, blah and then #ILFS 10-20% gone.
— sandip sabharwal (@sandipsabharwal) 1540288041000
Samir Arora, too, had something to say on IL&FS.
ILFS motto: Koi aisa saga nahin, jise humne thaga nahin
— Samir Arora (@Iamsamirarora) 1540391684000
As always, you could expect Shyam Sekhar of iThought to come up with the best investment 'gyaan' that will prove prudent for you in every market.
1. Sekhar says it is necessary that your asset allocation strategy changes with changing macros, valuations, and geopolitics. Rigidity is the easiest way to get slaughtered.
Your asset allocation strategy must keep changing with macros, valuations and geopolitics. If you are too rigid, t… https://t.co/79RbkL8s0T
— Shyam Sekhar (@shyamsek) 1540126114000
2. Managing risk supersedes maximising returns
#Mutualfundsahihai is still subject to market risk. Prudent asset allocation is what distinguishes good advice fr… https://t.co/3jECvIejQw
— Shyam Sekhar (@shyamsek) 1540126435000
3. Don't blindly buy a stock just because it has fallen
The extent of fall from the 52 wk highs don't automatically make stocks a BUY. The highs happened under a differen… https://t.co/dWhGp3l1wP
— Shyam Sekhar (@shyamsek) 1540172183000
The other asset class!
There is no doubt that equity is most likely to not turn out to be the best asset class of 2018. But it's highly probable that gold might.
Although global gold prices are still down 5% in 2018 In INR terms they are up 10% Might turn out to be the best as… https://t.co/AvJZjHe9H4
— sandip sabharwal (@sandipsabharwal) 1540441449000
Let's think 2019
Analysts on D-Street have found a silver lining to the rupee fall. Apparently, any year the currency depreciation has been between 12-20 per cent, the market has rallied the subsequent year.
Nifty performance in the years following major #INR declines 2008- INR fell 20%, 2009- Markets rose 75% 2011- INR f… https://t.co/Sj1jMLrTFa
— sandip sabharwal (@sandipsabharwal) 1540182625000
No comparison in current mkt and 2008 says @Iamsamirarora who says I am not bearish. 3 years 2008, 2011, 2013 when… https://t.co/su09Q7Vao2
— Safir (@safiranand) 1540435990000
By that logic, 2019 will it be a Supper Happy New Year for the markets. Well, lets keep our fingers crossed!
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