On the recent consolidation in the market
We have had a phenomenal rally in the markets over the last one year. The index has almost doubled from the lows of last March. Obviously, after such a phenomenal rally, it is very fair for the market just to pause to catch a breath. Obviously there will be a round of profit taking which investors might want to invest in.
There are certain clouds in terms of rising crude oil prices and some concerns on rising rates in the US but I do not think that any of those has a significant influence on India’s long-term growth story. Markets might pause to catch their breath and we might be in for a consolidation or a minor pullback. But beyond that, the bull market remains pretty much alive.
Private sector largecap banks, auto and auto ancillaries and engineering capital goods stocks are the choice of the founder of Renaissance Investment Managers
Reliance may be performing today, it has been a bit of a laggard. Your view?
After making a phenomenal move all through last year, Reliance had paused or taken a breather. From a slightly more medium term to longer term perspective, our house remains pretty positive on Reliance because we think they are at the cutting edge of both telecom and digital business and we are extremely bullish on both these businesses. The stock has been in a consolidation mode for the last few months but it will do well. We remain positive on the stock.
How are you approaching the so-called internet and platform and digital theme now? What about companies like
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During times of great volatility, instead of looking out one or two years, investors scrutinize the next 30 to 180 days into the future.
As recovery begins to happen, the market begins to look at the next 6, 12, 18 months, says Christopher Silipigno, chief operating officer and managing director with Renaissance Investment Group.
In the year to come, some market positives are that the creation of the vaccine is in the past, and that there are assurances that the federal government will continue to stimulate the economy, making for a good environment for risk assets such as stocks and bonds.