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stocks to buy: Keep some powder dry and use volatility to bet on 3 sectors: Gurmeet Chadha

“We have been positive on a few themes like specialty chemicals, API and technology but are always careful about valuations.”

reliance industries: Long-term Reliance story is intact: Gurmeet Chadha

What is the view on Reliance Industries, how have you looked at the stock performance? Do you believe that the long term story looks intact? I believe so. I have found a shift this time. Reliance is known to first do capex and then monetise. These new plans on energy, getting Aramco on board means they are sweating their assets as they build on it. So Rs 75,000 crore on new energy business is welcome. We have seen Shell do that in 2016. All global energy makers have to make that shift towards clean energy. I am pretty excited about the long term.

Stocks to buy: Stay neutral, stay light and keep some powder dry: Gurmeet Chadha

Stocks to buy: Stay neutral, stay light and keep some powder dry: Gurmeet Chadha
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Stock Market: Tread with caution, market showing signs of fatigue: Gurmeet Chadha

Complete Circle Consultant. What do you make of this pause mode in the market? Will there be a directional move either on the upside or the downside? It is almost impossible to predict short-term moves but some consolidation, some correction in a few pockets is always healthy. There are obviously a few pockets of exuberance and one needs to tread with caution. The market is showing some signs of fatigue around these levels. So whatever we invest in, has to be backed by solid earnings support. By that, I do not just mean Q1. A more near term and a blend of growth and value strategy would help rather than just chasing momentum in a few pockets. As the economy opens, auto, some of the IT names and pharma and some of the specialty chemical names should do well.

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