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Top market voices on Sensex crash, bond yields, PSUs and more

Updated : February 26, 2021 06:52 PM IST

Here is what market gurus and industry captains said about the near-term trajectory on Feb 26, 2021.

 On Stock market | Ajay Srivastava, Dimensions Corp Fin Svcs:  This is the time to buy, not to sell or short stocks. I would suggest buying key financial stocks, such as ICICI Bank. Continue to remain positive on metals and building products space.
On Stock market | Ajay Srivastava, Dimensions Corp Fin Svcs: This is the time to buy, not to sell or short stocks. I would suggest buying key financial stocks, such as ICICI Bank. Continue to remain positive on metals and building products space.
 On Sensex crash | Arvind Sanger, Geosphere Cap:  Correction is overdue in the market, correction up to 10 percent is very healthy and normal in a bull market. P/E multiples are overrated and the market is discounting higher earnings already. This is the time to look for new emerging leaders in the market, I would begin with cyclical stocks. Midcaps and small caps are a place to be in for the next three-four years. The rising commodity prices, on the other hand, are indicating inflationary pressures, and Copper prices have crossed their 2007-08 peak.  Catch the conversation    here   .
On Sensex crash | Arvind Sanger, Geosphere Cap: Correction is overdue in the market, correction up to 10 percent is very healthy and normal in a bull market. P/E multiples are overrated and the market is discounting higher earnings already. This is the time to look for new emerging leaders in the market, I would begin with cyclical stocks. Midcaps and small caps are a place to be in for the next three-four years. The rising commodity prices, on the other hand, are indicating inflationary pressures, and Copper prices have crossed their 2007-08 peak. Catch the conversation here.
 On Nifty | Laurence Balanco, CLSA:  We are expecting the deepest correction near 13,500 for Nifty, but it won't affect the bull case for India. We are looking at Nifty Bank touching 32,500 as strong support. Expecting FMCG to outperform in the near term. You can also expect a bigger re-rating in SBI, it is the breakout of the year.  Catch the conversation    here   .
On Nifty | Laurence Balanco, CLSA: We are expecting the deepest correction near 13,500 for Nifty, but it won't affect the bull case for India. We are looking at Nifty Bank touching 32,500 as strong support. Expecting FMCG to outperform in the near term. You can also expect a bigger re-rating in SBI, it is the breakout of the year. Catch the conversation here.
 On bond yields | Geoffrey Dennis:  We are seeing a selling-off in bonds due to high optimism about the US economy -- I expect the economy to grow 5-6 percent this year. The dollar is a stable currency, so are emerging markets currencies, which is good for markets. However, emerging markets will be impacted by US equity sell-off. Bond markets don't like a higher deficit on stimulus and I think a $1.9 trillion package is just too big. I have been expecting the bond yield to rise for a while but Fed will have to push back if things get ugly over the next few weeks, if they don't, the yields might edge higher.  Catch the conversation    here   .
On bond yields | Geoffrey Dennis: We are seeing a selling-off in bonds due to high optimism about the US economy -- I expect the economy to grow 5-6 percent this year. The dollar is a stable currency, so are emerging markets currencies, which is good for markets. However, emerging markets will be impacted by US equity sell-off. Bond markets don't like a higher deficit on stimulus and I think a $1.9 trillion package is just too big. I have been expecting the bond yield to rise for a while but Fed will have to push back if things get ugly over the next few weeks, if they don't, the yields might edge higher. Catch the conversation here.
 On PSU Divestment | Sridhar Sivaram, Enam Holdings:  For PSUs, the valuation gap between growth and value had widened significantly sometime last year. We were sure that the divestment process was not going to help, risk-reward was extremely favourable in PSUs till three-four months ago. Now it looks like the government has been pushed to the wall. BPCL and Concor are two of the best companies that can be offered, and the rest of the PSU basked must be re-rated on account of one or two significant divestments.  Catch the conversation    here   .
On PSU Divestment | Sridhar Sivaram, Enam Holdings: For PSUs, the valuation gap between growth and value had widened significantly sometime last year. We were sure that the divestment process was not going to help, risk-reward was extremely favourable in PSUs till three-four months ago. Now it looks like the government has been pushed to the wall. BPCL and Concor are two of the best companies that can be offered, and the rest of the PSU basked must be re-rated on account of one or two significant divestments. Catch the conversation here.
 On Mutual Funds riding out PSU wave | Feroze Azeez, Anand Rathi Wealth Management:  There are some funds that have reasonable exposure to PSUs and can be used as a proxy to play the PSU rally. HDFC Flexi Cap Fund has about 37 percent exposure. If you want to play the banking theme then this is the best fund. From a banking standpoint, both Franklin Bluechip Fund and HDFC Flexi Cap have the largest component of the PSU in the banking space.  Catch the conversation    here   .
On Mutual Funds riding out PSU wave | Feroze Azeez, Anand Rathi Wealth Management: There are some funds that have reasonable exposure to PSUs and can be used as a proxy to play the PSU rally. HDFC Flexi Cap Fund has about 37 percent exposure. If you want to play the banking theme then this is the best fund. From a banking standpoint, both Franklin Bluechip Fund and HDFC Flexi Cap have the largest component of the PSU in the banking space. Catch the conversation here.
 On new IT rules | Karan Taurani of Elara Capital:  It’s a welcome move for the industry because the industry wanted this kind of a thing. This is a balanced approach; there is no blanket censorship for the OTT players. There is more of regulation and some more restriction in terms of content delivered.  Catch the conversation    here   .
On new IT rules | Karan Taurani of Elara Capital: It’s a welcome move for the industry because the industry wanted this kind of a thing. This is a balanced approach; there is no blanket censorship for the OTT players. There is more of regulation and some more restriction in terms of content delivered. Catch the conversation here.
Published : February 26, 2021 06:46 PM IST
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