Investment strategy: Will the market to relax or continue? Sandip Sabharwal Answer

“So, as I said last week, we were fully invested, so that we do not keep cash in this phase, since the risk of a potential upward trend from 25% is down to 5%,” says Sandip Sabharwal.
Last week it was bad, will be better this week, that's hope. Will hope be dealing with reality?
Sandip Sabharwal: The weekly predictions are very difficult in view of the relentless sale we saw from foreign investors. Therefore, it has become more technical in nature, in which the reviews are very reasonable and many stocks and companies that do very well have also significantly corrected from the tips. Due to the entire fund flow image and the one that was sold with the sale of the Margin trading system, etc., the dealers created this type of fall in a short time. In my view, however, the ratings, as I see the market, seem very reasonable.
Even the sale in small caps and midcaps has reached a level that give and take the typical level of the heaviest type of correction movements in small and in the middle caps of 2-3% here or there. As I said last week that we are fully invested, we do not hold cash in this phase, since the risk of a potential upward trend of 25% up to 5% is down.

The problem on the market is technical and PE-de-rating. Basically, we can now say that this market does not lack good news. The car sales were decent, the GST numbers were strong, the GST seems to regain, the income was not that bad. On one side you have the basics that move on your side, the other side that you flow completely against you, and the technical data that is simply not strong and supportive. How will things settle? I mean, could it get really bad before it gets better? Can the technical sale really become a tsunami before it gets better, or the sheer basic news will we keep us at bay?
Sandip Sabharwal: My analysis of the markets that show the markets, the feelings, especially what we saw last week, where I got so many inquiries on Friday that we only sell our entire portfolio and remain in cash and that the ratings are not under historical ratings at a time when we are actually in a monetary cycle.

As a rule, the decay should be an acceptable thing if we are in a monetary tightening cycle, since the risk -free rate increases and the evaluation as such decreases.

That is not the case today either. So, the tsunami of drains from India and some other Southeast Asian markets when you see some markets, although many people do not follow here, but when you see what happens in Thailand, Indonesia, etc.

So it is a kind of global phenomenon. India initially took a larger main burden on capital profit problems, etc., which is not available in some other countries.

But the persecution of funds flows to make predictions on the market and then decide their investment strategy because we say they were in a year and in 2007 when a tsunami came from money to the country, but the ratings were absolutely crazy and not with reality for synchronization with reality. Then would you just rely on an investment decision will be made next year next year?

So the answer is no. So you have to buy if you think you get shares, sectors or companies that you believe that you are reasonably valued, and then wait for you to appear, that is the only way.

Banks currently seem to be like a consensus trade. Everyone says that ratings are cheap, there will be growth there. Where in the banking pool have you added or bought positions?
Sandip Sabharwal: Among the big banks, as we first bought into Kotak Bank, we expected the solution to RBI problems and turns, so this was exceeded. Therefore, this has not bought lately, but Axis Bank is something that I like at the current prices. Like Icici, it will continue to do it well, it is a core stock.

But then Axis Bank is quite well placed in pure reviews and the type of risk management that the bank shows in order to control its overall quality of assets and the ratings, as far as large banks are affected.

What about real estate? Did it correct a good piece? We saw how we also teamed up in real estate sales.
Sandip Sabharwal: The shares have corrected out there, but I would say in accordance with the Midcap side of the market, not too excessively, and there is a very realistic possibility that real estate sales will be slowed down at least this year, since they continue to grow if the rest of the sectors are not so well active.

And as you rightly said, that the latest data also indicate a sale of sales, and usually, if this happens, the price -performance also reduces the possibility of discounts, etc. ..

So my guess is that the next year will be a phase of consolidation for the real estate sector instead of giving considerable upward opportunities. If the overall market hops, these shares will of course also jump.

But we have to be careful at short notice. If we do not find a compelling value in some stocks that we have to carry out that we have to carry out, I largely kept the sector on the side and did not look at it at short notice. But at some point there will be opportunities.