Last Diwali was very auspicious for the market. Between Diwali and this Diwali, Nifty gave blazing returns of 45%. For the past several years, the beaten sector also started to sparkle. The enthusiasm of the market and investors is at full high. To discuss investing ahead of Diwali, CNBC-Awaaz has started a special series Samriddhi Mantra in which Today Dinshaw Irani of Helios Capital India spoke and gave his opinion on the market.
Talking on the market, Dinshaw Irani said that the strong rally of the market has surprised everyone. But in comparison to last year’s boom, this year should be invested a little cautiously. At the same time, the valuation of the market is expensive in terms of interest rates. Therefore, I believe that there may be a correction in smallcap stocks going forward. Therefore, investors should invest in stocks wisely and cautiously.
Banking to benefit from the target of 5 trillion economy
Irani said that the banking sector will be greatly benefited by the government’s target of 5 trillion economy as the wheel of economy seems to be moving ahead in the banking sector itself. The uptrend in the market will come from consumption. Banks will have to come forward for funding this consumption sector, so there is full potential for growth in the banking sector and it will continue to grow. But I think there is more hope for growth in private banks. We prefer private bank stocks instead of government ones for investment.
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Market will remain expensive in future, but growth will increase
Further, for buying in the market, only expensive levels will have to be considered, that is, the market may remain expensive, but with this growth will also be seen increasing. It would be advisable to stay in the IT and banking sector by investing in it. Further growth is visible in the IT sector. At the same time, shares of private banks, NBFCs, mortgage companies will also be bright because they fund projects and pay less attention to retail. Therefore, their shares may see an uptrend. Along with this, it would be advisable to stay invested in companies with consumer, auto loans.
Stay away from companies with expensive valuations
One should avoid investing in expensive valuations in the market. Dinshaw Irani said that the valuation of multinational FMCG companies is expensive at this time. On the other hand, the shares of paint companies are very expensive. Therefore, one should stay away from companies with expensive valuations. At this time the shares of FMCG companies have gone up a lot, so care should be taken while investing. However, it would be better if you exit the smallcap stock for the time being. Apart from this, we are also cautious about companies with electric vehicles while doing fund management here.
Invest in select realty, insurance and hospital stocks
Responding to the question in which sectors are creating investment opportunities in such a market, the CIO of Helios Capital said that the boom in the economy is an important trigger for the realty sector. We believe investing in realty can be profitable. Apart from this, we like private insurance companies because the awareness about insurance has increased in the country and it will become a need of all in the coming time, so there is a lot of growth potential in it. On the other hand, you can invest in selected hospital stocks for good earnings.
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