Market Guru in talk with RJ Salil Acharya of Radio City: People can invest in MidCap Metal, Sugar and Textile Stocks

Anil Singhvi, Managing Editor, Zee Business, says, the market is throwing a good opportunity to find and invest in good stocks to those who have a view of three years or more. During a candid radio chat with RJ Salil Acharya, Radio City, 91.1 FM, Mumbai, Mr Singhvi said people can invest in MidCap companies of metal, sugar and textiles stocks. It is a time to create an aggressive portfolio with SmallCap and MidCap shares.

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RJ Salil started the radio chat with a discussion on the ongoing situation and said, your life is slightly different like us, whatever happens, the stock markets, the radio and the media continues to move. So, how you can remain non-emotional in this, just by looking at the data in which the market continue to move up and down daily. Does it affect you, people, as well? To which Mr Singhvi replied to it by saying, the question is good, definitely, an emotion works when the market goes up it gives a sense of happiness while mind gets sad when there is a fall because most people are not able to make money, except some short-sellers. But some people say, emotions of the markets either have a slight impact or have no impact on their emotions and the big reason is that if you are evolved with the market on a day-to-day basis and trading or putting your money directly in the market then it has a slight impact on your emotions. What I do is that I put my money through mutual funds and this is a reason the fall or gain in any stock or the market do not have any impact on me as the money has been invested with a perspective of 5-10-15 years. So it does not matter much, the emotions remain fine.  

Continuing the chat further, RJ Salil said, is our stock market safe? Now, the GDP numbers and the upcoming production of the next three months will be impacted because there is a nationwide lockdown and I think protecting lives is more important due to which the basic production will sit on the back seat. So, are you predicting a slightly worse situation for the next 2-4 months? Mr Singhvi said, there are two things, there is no doubt that if you will have a look at the situation of CORONA across the nation, then you will not be able to buy even a single share, rather you will even sell those that you have and maybe make your friends and neighbours to sell their stocks. But the problem is that the market is seeing somewhere else, and those with a view of three days, three weeks or three months, have a fear in this market but those with a view of three years or more are seeing it as an opportunity. It is the same opportunity that came last year, so, if you have a long-term view then there is a best opportunity to choose the best shares in this bad and weak environment. This is a reason that the markets are not being able to run due to CORONA and is also not falling due to the participation of investors who have a long-term view as they are investing in the market. This is the reason that the market is quite range-bound. 

In his next question, RJ Salil said, announcements will continue to come, moratorium to some aid from the government – may be announced in the next one to three months. In such a case, which shares do you think will look more attractive in this situation from the next 3-6 months perspective? Mr Singhvi said, there is a huge bullishness in commodities across the world. Commodities do not just mean metals or something similar to it but there is tremendous bullishness in eatables and yarn among others. So, I will provide you with a list where you can invest your money and you have to invest in the MidCap companies and it includes the MidCap companies of the metals, sugar companies, textile and yarn manufacturing companies they are in quite bullish. So, I am quite bullish on these three sectors and you can invest in these sectors. In sugar, you can opt for companies like Balrampur Chini, Dwarikesh Sugar and Dhampur Sugar among others. In metals, you can look forward to Tata Steel BSL and Tinplate among others and you can buy them in the fall. In textile, you can buy Arvind Fashion and Siyaram Silk Mills. So, it is a time, when you can move from the index leaders to MidCap and SmallCap shares, particularly in those which are associated with commodities, and invest in those. Also, fertilizer and paper stocks are looking good. So, it is the right time to create an aggressive, small and MidCap shares portfolio