Nifty At 25,000: Consider Overlooked Themes, Say Market Watchers
Investors must think long term and pick up themes and companies where growth has not been completely priced in yet, said Nimesh Chandan.
As India's benchmark index, the NSE Nifty 50, climbed to a fresh record and surpassed the key psychological barrier of the 25,000 mark, investors should review their portfolios, according to Nimesh Chandan, chief investment officer at Bajaj Finserv AMC Ltd.
Investors should take contrarian calls by choosing and investing in themes or companies which have been ignored from the past few years, he said. Apart from the international and capex side, he highlighted the need to focus more on the domestic or consumer front. “Investors must think long term and pick up themes and companies where growth has not completely priced in yet.”
From past three to four years, performance of consumer staples and discretionary segment has been very subdued. But the present green shots signal a positive pickup or growth in these sectors, Chandan said.
Risk factors are a blend of global and local issues, according to Mihir Vora, chief information officer at Trust Mutual Fund.
The most significant concern is the recent strengthening of the Yen due to the bank of Japan’s rate hike, which could trigger an unwinding of positions, he said. Earlier, Bank of Japan raised their policy rate to 0.25%.
It's crucial to sustain domestic growth through government spending and rural recovery to keep market sentiment positive, Vora said. Despite these risks, he remains optimistic about the market's overall outlook.
The benchmark took 23 sessions to reach the 24,000 mark, while it surpassed the 23,000 in 89 trading sessions. The gauge took 63 sessions more than it took to touch the 22,000 mark.
India is in a transformation stage, said Vikas Khemani, founder of Carnelian Asset Management & Advisors Pvt., who is optimistic about the wealth creation cycle in the next 10 years. Instead of worrying about the numbers, long-term investors should infuse their money in the markets, he advised.
"For the next 8-10 years, there is lot of money to be made from here. The best for the long-term investors is to stay put," he said.
Khemani is bullish on sectors like manufacturing, finance, consumption among others and recommended investors to not underplay risk, rather get "adjusted for the risk" to make better money.
Moving forward, rather than looking at a company’ market capitalisation, Khemani prefers to look at their business and the management running the company before investing. “If I find that a business is run by a good management, then I would rather buy it small than buying it big.”
