Market Guru in talk with RJ Salil Acharya of Radio City: 2021 is likely to be a good year for IT Stocks

Anil Singhvi, Managing Editor, Zee Business, says, Stay Firm, Stay Frozen and Do Not Move, you will make money in the market and this is the mantra that I learnt in 2020 from the stock market. During a candid radio chat with RJ Salil Acharya, Radio City, 91.1 FM, Mumbai, Mr Singhvi said, I believe 2021 will be very good for the IT sector and IT companies, maybe big or small, will continue to gain momentum as per their capacities.

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Starting the radio chat RJ Salil Said, if we will just talk about the statistics then it was a shocking year in which people got opportunities and some people who never entered the stock market in their lives, came into it. So, from a financial perspective did you knew it or the stock markets and all the companies have performed much more than your expectations. To which Mr Singhvi said, on both sides, i.e. in the case of falling (bearish) as well in the case of rising (bullish). I never thought that the market would fall so much and never thought that it will go up so much after the fall and that too fast. This is the quality and speciality of the market is that it has a habit to do the opposite of what we all think together. So, there is just one mantra for the market and we have learned it in 2020 and that is stay firm, stay frozen and do not move, you will make money. If you would have not done anything and bought in 2019 with a plan to sell it in 2021, even then you have made money. Secondly, whenever you have a chance and get a big shock than instead of being afraid of the shock if you have some money in your pocket then invest it in the market and sit calmly. These are the two big lessons that I got in 2020. 

Continuing the chat further, RJ Salil, asked do you think that the banking sector is the sector that has outperformed the most this year. And Mr Singhvi said, two sectors that have surprisingly outperformed were (i) Chemical sector came as a surprise as we did not think that chemical stocks will run at such a speed and (ii) cement sector, although there was a lockdown, every activity was closed and construction activities were low but despite that the cement shares ran at a great speed. But the two sectors, which behaved bullishly and were bound to grow, were Information Technology (IT) and it was expected to grow because everyone was working from home using technology and Pharma, it was quite good. These two sectors, chemical and cement, came as a surprise and the one that contributed to increasing the earnings were the IT sector and Pharma sector. 

After this, RJ Salil said, a report says that just 3% of Indians are investing in the stock markets and less than 1% people buy SIPs although people known to us are doing something there is a lot of scopes to invest and make money in the market. Mr Singhvi in his reply said, there is no doubt that every year and every time you can get some stocks in the market, it is just that you have to invest for a long time and that too in a right stock. So, I feel that there can be some sectors even in 2021 that can give money to you, like IT, I believe this year will be very good for the IT sector.

To this, RJ Salil asked, should we invest in heavyweights like Infosys, Wipro and TCS, or you have few other gems? And Mr Singhvi replied by saying, both, big and small, kind of shares will do that. In the IT sector companies will continue to gain momentum according to their respective capacities. Secondly, companies which are involved in the digital business, directly or indirectly. Thirdly, companies related to telecom. Make sure that your mobile bills are going to increase and data consumption will go up, thus the telecom sector will do wonders. Apart from this, the cement sector is likely to do well in the traditional sector because construction activities are likely to increase.

There will be a slight rise in the real-estate sector as small buying activities can happen here. Another sector that can be dark horse is infrastructure and construction, which could not do much this year but can, run next year. Apart from this, the stocks related to food and drinks as well as agriculture are evergreen and will continue to run.