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market | IST

Market at all-time highs: Control your greed, stay lightly positioned, says Shankar Sharma

As the Nifty has hit 16,000 on a day of highs, Shankar Sharma of First Global has warned investors to not get too greedy. The Indian equity benchmarks roared to all-time highs on Tuesday riding on hopes of recovery and earnings optimism, shrugging off weakness in other Asian markets.

As the Nifty has hit 16,000 on a day of highs, Shankar Sharma of First Global has warned investors to not get too greedy. The Indian equity benchmarks roared to all-time highs on Tuesday riding on hopes of recovery and earnings optimism, shrugging off weakness in other Asian markets.
“This is the time when you control your greed, you keep your positions relatively well spread out instead of getting boxed into one corner of the market and you hope that everything continues to be well but you are prepared for it not to be so,” he said.
It maybe time to have a diversified portfolio rather than betting on only certain sectors, according to the market veteran.
“We are positioned lightly across several sectors, not concentrated on just IT or just pharma or whatever else is running. That is way we are playing our own philosophy,” he added.
Which are the stocks to keep an eye on?
“On the market front, it is the smaller ones which are stealing the show here versus the likes of Asian Paints and the HDFC Bank and the Hindustan Unilever Ltd (HUL) of the market. So it has been very paradoxical,” he said.
“We are in good shape overall as a market at least. Nifty, by and large, has been tepid. So even if you see the year-to-date, the Nifty doesn’t look very good but if you go one inch below the Nifty, the midcaps and smallcaps have been in a completely different orbits,” he added.
On the slew of initial public offering (IPO) hitting Dalal Street, he shared, “I am enjoying the moment rather than participating.”
New-age companies are of interest to Sharma. “The whole world of tech or quasi tech investing to India which was earlier getting exported to Singapore or to Hong Kong or to NASDAQ or to London, now those companies will list right here. There is enough appetite, enough capital available to support these companies,” he explained.
Sharma said that he likes the metals space but not enough to have the kind of positions held earlier by them.
"We have trimmed money off that. We are just being cautious, taken money off the table from a lot of the steel and the metal names,” he said.
"Other than that there has not been a big shift, we continue to like what we have liked in the last several months. IT pack looks good. One of the biggest winners we had in July in our July performance was actually the stock that has been held by many, like JSW Energy,” he added.
For the full interview, watch the accompanying video.