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Playing the rally but prepared for a pullback: Shankar Sharma

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“It does appear, in some sense, a 2004 kind of a market but as I am always of the view, let us not jump the gun,” said Shankar Sharma, Vice Chairman and Joint Managing Director at First Global in an interview with CNBC-TV18.

Dalal Street has been scaling new highs almost every day. The Nifty has scaled 13,000 and the Sensex is above 45,000 comfortably currently. However, there is a growing fear that a correction is around the corner because of the high levels.
“It does appear, in some sense, a 2004 kind of a market but as I am always of the view, let us not jump the gun,” said Shankar Sharma, Vice Chairman and Joint Managing Director at First Global in an interview with CNBC-TV18.
“We are playing this, let us hope it continues and if it does then it is going to be a pretty good period for emerging markets, for Indian market, for all commodity related markets,” he said.
“In 2004 a massive emerging market bull market started in which India was a prime participant. That was driven in some sense by a weakening dollar which drove out money from the dollar assets into non-dollar, into emerging, into commodities, we saw huge bull rally, huge oil rally. In some sense, it is a move away from US dollar into emerging, into commodities – let us just watch how things pan out. Investing is not a game of complete certainty, you will never have that at all points in time. I think there is a good chance that we are seeing life come back into emerging markets after a 10-year lifelessness in which all emerging markets have done nothing much,” Sharma gave a historical perspective.
On sell-off possibility, he said, “We always fear of sell-off. Central to our belief is that, if you avoid the big losses, you will come out massively ahead of the rest of the pack and massively ahead of the market as well. So avoidance of big losses is central to our fund management philosophy. In that mindset, we always fear a big sell-off and in particular at a juncture like this where markets have had a very smooth – I think this has been the smoothest rally I have seen in a long time. We are not sitting it out, we are playing it but we are playing it with a perspective that be prepared for a sharp pullback because that is least expected.”
For entire discussion, watch the video

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NTPC118.50 -0.80 -0.67
CompanyPriceChng%Chng
Tata Motors295.55 -7.00 -2.31
Grasim1,549.50 -32.55 -2.06
Larsen1,611.75 -30.40 -1.85
Adani Ports680.05 -11.75 -1.70
Tech Mahindra1,131.00 -17.60 -1.53
CompanyPriceChng%Chng
Larsen1,612.00 -29.55 -1.80
HUL2,359.25 -19.40 -0.82
Reliance2,105.20 -15.80 -0.74
Asian Paints3,083.20 -21.25 -0.68
NTPC118.50 -0.80 -0.67

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