Market Guru in talk with RJ Salil Acharya of Radio City: People can invest in infrastructure-related stocks like L&T and Adani ports
Anil Singhvi, Managing Editor, Zee Business, says, our markets are in a marathon bull run so they will stop at times, halt, get tired and then will get up and start running again.
Anil Singhvi, Managing Editor, Zee Business, says, our markets are in a marathon bull run so they will stop at times, halt, get tired and then will get up and start running again. The same is happening this week after little slowness of the last two weeks. So do not be afraid at all, stay strong, if you have a view of 3-5 years then you will be able to make a lot of money in this market. During a candid radio chat with RJ Salil Acharya, Radio City, 91.1 FM, Mumbai, Mr Singhvi said, people can invest in infrastructure and construction-related stocks like L&T and Adani ports.
Starting the radio chat RJ Salil said, the fear of the stock market is still present in the mind of people. Although the market has come up a bit. But there are people who want to buy and sell in a day. Do you think that selling nervousness has come within the investors or not? To which Mr Singjvi said, there has been a slight break at the speed of the market growth, but it does not mean that things have turned bad or there is some issue. You are stopping a bit after running fast. If you have to run 100 meters, then you will run vigorously and if you want to run in a marathon then your speed will be different. So, our markets are in a marathon bull run so they will stop at times, halt, get tired and then will get up and start running again. The same is happening this week after little slowness of the last two weeks. So do not be afraid at all, stay strong, if you have a view of 3-5 years then you will be able to make a lot of money in this market.
Continuing the chat, RJ Salil said, two things are being questioned nowadays and they are (i) Do tax collection have any direct impact on our stock market and (ii) Our GDP has been decreasing for the last 5-6 years, yet the market is going up. What does it mean? Should they understand that the 50 stocks that contribute to Nifty are making money, or a lot of better works is happening across India? Mr Singhvi replied to this question by saying the first thing is the GDP figures that come are old and the market focuses on the future. So, forget what has happened. Now, focus on what is going to be good, the economic growth that will come this year and the market is focusing on the same. So, we do not look towards the old figures. Secondly, you also talked about the earnings of the companies then the fifty companies are earning and there is no doubt in it. But if you will look beyond Nifty then I can say that the bull run of the earning of the companies that we saw between 2003 and 2008, when the earning of the companies increased tremendously and this is the first time – in the last two quarters (last six months) – such indications are there that such 3-4 years can come, where the companies can earn a lot for the next 3-4 years. A big bull run of earnings of the companies is about to start. See, you buy shares and if the companies will earn then their shares will grow automatically. So, I think a big change is going to come to the country’s growth. The next two years will be very interesting.
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RJ Salil in his next question asked about the stocks on which the investors should focus this week. Mr Singhvi said, continuously, I have been advising you to buy government companies. Last week, I told you about the fertilizer stocks, they are quite bullish and have gone up by 40-50% within a week. Still, I think that you can make money in these stocks, but you have been a bit late to enter into the segment. Now, you can focus on infrastructure and construction companies like L&T and Adani Ports, this type of legendary stocks and I feel you can make money here. To this RJ Salil aksed, it seems L&T has always been your favourite, but such a correction has not happened in L&T, yet? To this Mr Singhvi said, when the correction happens in good things. What is good always remains good and what is expensive is always expensive. Yet it will increase and there is no doubt in it. So, focus on infrastructure-related stocks.
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