Arvind Sanger, Managing Partner, Geosphere Capital Management, on Tuesday, said, "If one were to play the telecom sector, the pure play is Bharti Airtel.” Sanger also mentioned that inflation and a weaker rupee are big concerns that are currently plaguing the investors. He further mentioned that it is the time to be cautious and patient and investors shouldn't rush in to buy stocks.
“Telecom is an area that we would look for any opportunities to maybe get involved or be indirect beneficiaries of that. Clearly, this is a sector where it is now pretty much a duopoly although there is a third player, who is much weaker financially,” he mentioned, in an interview with CNBC-TV18.
Sanger mentioned that he would be taking more of a value approach in the portfolio. He believes it’s important to be patient in the current market scenario.
“One needs to be circumspect and cautious. I would say be patient and be intelligent about what one buys,” he said.
He believes this is a comparatively trickier time to be getting too adventurous.
“Our preference is to be a little more cautious and not to rush in and buy stocks early,” he stated.
He would be rotating into sectors that are less susceptible to what is coming and not betting on new companies with no earnings and taking the risk.
He believes that there has been too much of loose money chasing after too many companies around the world with very little earnings and a lot of future hope built in.
"In India’s case, it sounds like the Paytm IPO may have been the catalyst to get things accelerated in terms of some of the hot money chasing after the latest tech unicorn to come public," Sanger said.
According to Sanger, the bigger concern right now in India and in few other emerging markets like India, where inflation is a concern and yet the central bankers are being super dovish, is concern about the currency.
“The dollar is getting stronger – my concern is can the rupee get weaker in a hurry? So as a foreign investor, I would say, that would be one of my concerns and as a domestic investor, I would be worried about inflation,” he said.
is at a near-term peak in the US, he noted.
“The Fed could be forced or could have to start talking about maybe being forced to do faster taper. If that talk does take hold then the short-term emerging markets (EMs) will see a little bit of a risk off selling now,” Sanger said.
For the full interview, watch the accompanying video.
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