Last Diwali was very auspicious for the market. Nifty gave strong returns of 45 percent between last Diwali to this Diwali. The enthusiasm of the market and investors is at full high and new investors have also made a strong presence in the market. What things should be kept in mind while investing in the market before Diwali and which sectors should be focused. To discuss all these things, CNBC-Awaaz has started a special series Samriddhi Mantra. In this, Manish Chokhani, Director, Enam Holdings spoke in detail with us. Know the key parts of the conversation with him-
Giving opinion on the market and investor’s desire, Manish Chokhani said that everyone wants more returns than the market. There is a need to balance profits and market returns. Hence it is important to match the profits and returns. Anyway, the market moves first while discounting the future.
If we look at the figures of last year, the market has jumped 45% in one year. At the same time, 40% growth in profit is possible this year. However, this year the returns may be less than profits. The market has already discounted profits. Along with this, correction is possible due to increase in inflation and interest rates.
We have seen that the market momentum decreases with the tightening of liquidity. At present, the effect of COVID has reduced due to the intervention of the government, the central bank. The Central Bank has taken concrete steps to increase liquidity. We all know that the market does not run without the support of the government and the central bank.
Looking at the movement of the market at this time, what are the things to keep in mind
The director of Enam Holdings said that the investor should keep in mind three things in the market. The first is that better returns are possible in well-earning companies. Secondly, wealth creation takes place in the long run and thirdly, do not expect high returns from stocks with high volumes.
Some companies got low returns due to expensive valuations
Manish said that last year, cheap valuation companies gave good returns, while these companies got low returns due to expensive valuations. For example, last year companies like NESTLE, HUL got low returns. Along with this, last year MARUTI, KOTAK, HDFC Bank did not give much returns as their prices had already reached very high levels. On the other hand, the IT sector with cheap valuations got strong returns. Besides, metal and realty stocks rose.
Focus on companies with attractive valuations
If you want to make good profits, then keep an eye on the good companies that are not doing much before. So invest where you expect a jump in profits. If you want to invest from Diwali this year to next Diwali, then investing in banking, media, automobile can be beneficial. At the same time, even after this, the bull market rotation will continue.
Market troubles may increase due to crypto currency
What will support the market or where can there be problems in the market. On this Manish said that at this time a new asset has emerged in the market, whose name is cryptocurrencies. Many people still don’t know much about it. That’s why I think the market could crash because of cryptocurrencies or it could add to the troubles in the market. On the other hand, not much money has come to FIIs in India. Therefore, correction in the Indian market is possible due to the global crisis. Although India’s economic cycle is very strong and there is a need to worry if there is continuous bad luck for two-three years in it, but nothing like this seems to be happening.
Digital companies, what is EV segment will make money for retail investors
Talking about the EV segment, Chokhani said that even 120 years ago, EV vehicles were made. China has been making these vehicles for the last 10-15 years. Now according to the demand of the time, people’s trend towards EV vehicles has increased by changing diesel and petrol engines in it. When any new sector starts, many companies come in it and only a few companies are able to survive after meeting the challenges.
However, the eco-system of traveling with electric vehicles will change. At the same time, the picture of EV players is not clear yet. Let the industry take shape before investing in EVs. You may note that only a few companies perform well in the long run. However, we should keep an eye on EV developments. So don’t think of earning in EV in the short term.
Startups and IPOs are coming, what are the investment opportunities in such companies
Manish Chokhani said that invest wisely in startup stocks. However, new sector companies can take advantage of IPO. However, wait for good performance before investing in these companies for long term.
What kind of portfolio will you make, in which sector will you advise to invest money?
Talking on portfolio and investments, he said that the bull run in the global market is continuing with the central bank increasing the liquidity. At the same time, equities are better as an investment option due to lower interest rates. Gold and real estate have also not given good returns. On an average the market gives three times returns in a decade. However, don’t expect returns like last year. Today’s young generation shows little interest in gold investment. So equity market is best for making profits but moderate your returns and invest with moderation. Keep in mind that not much money is made in the popular sector. However, there is a possibility of higher returns in banking, media, auto going ahead.
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