market | IST

See corrections as good buying opportunities in Indian market: Marathon Trends- PMS

Atul Suri, CEO of Marathon Trends - PMS thinks that markets have run up, and it may be risky to some short-term corrections. According to him, it is not the time to really go out and take a cash call because even in the past, it’s been seen that markets tend to have blowout moves after big crashes.

Atul Suri, CEO of Marathon Trends - PMS thinks that markets have run up, and it may be risky to some short-term corrections. According to him, it is not the time to really go out and take a cash call because even in the past, it’s been seen that markets tend to have blowout moves after big crashes.
Suri said, “When markets went into consolidation phases, it was extremely rewarding for investors. So again, there’s no attempt to find a top, no attempt to stay in cash, because history has shown us that corrections will come and I think, there will be opportunities, even in a sideways or consolidated market, there will be a lot of wealth creation opportunities.”
On global markets, Suri said, “One big area in the US that is showing a bit of divergence, a bit of a red flag for me, is the divergence between the Dow Jones Transportation and the Dow Jones Industrial Average. Now, there is a theory and it says that the Dow Jones Industrials and Dow Jones Transportation should go together for a sustainable bull market. What we are seeing is that transportation is correcting, though industrials is holding out, so that becomes an area of divergence and that is the area of concern.”
“The second area, which I think, really affects India is the performance of the emerging market (EM) basket. For whatever it is in the last four to five months, the EM’s index per se has not done well. India has been ranked outperformer in the EM basket and thanks to China, emerging markets as an asset class have not done much and that is why you will find that the FII flows to India stop and start. One week they come positive, one week they come negative and the major push to our markets is domestic liquidity, domestic investors. So as I said, there are no red flags, the breadth is generally good globally. Most global markets are doing well,” Suri mentioned.
He believes every bull market throws up new leadership. He said, “The last bull market from 2015 to 2020, I think, was representative of banks, the private sector banks really led it. Today, if you look at it, it simply seems to be the most overweight position with most funds, etc.”
He further said, “Clearly, the mantle of leadership has moved away from banking towards IT. I think healthcare and pharma is another sector, again, not shown in the Nifty Pharma Index, because there you have weightage of Lupin and Sun Pharma, which are not doing much. But if you see broadly, a lot of pharma and healthcare stocks, hospital stocks are doing very well.”
“Weakness that really comes in is more in the case of autos. Autos is definitely one sector that is showing immense weakness in terms of market breadth. You see, sectors like media again, you know, pretty badly bombed out. They have one or two good days, but they are not able to sustain,” he mentioned.
For full interview, watch accompanying video.