Kunj Bansal, NISM, recommends a divided investment approach, focusing on long-term and trading portfolios. He elaborates on portfolio strategies pre-Budget, the pharma sector s defensive appeal, and recent underperformance driving market interest. The IT sectoe has corrected significantly and depending on how things shape up we might see the buying interest coming back.
Kunj Bansal discusses the re-rating of public sector banks catching up with private banks, mixed retail sector performance, RBI directive benefiting banks, and the importance of fundamentals and valuation for higher returns in the investment.
The recent sharp decline in stocks like IDFC, IndusInd, and HDFC may be a result of market corrections after continuous highs. This correction is expected, especially for sectors that have seen significant growth. However, the pharma sector has been outperforming after years of underperformance. It is difficult to predict the timing and extent of these corrections, but they are necessary for a balance between valuation and fundamentals.
Investment into core areas such as infrastructure, capital goods, and manufacturing will result in increased standards of living, higher earnings, and increased disposable income. This will lead to a boost in consumption of consumer durables, goods, textiles, passenger vehicles, and two-wheelers. It is important to also consider the agricultural sector, as it contributes significantly to the GDP and employs a large percentage of the population. Investments in core areas will have a positive impact on associated industries and services , creating a chain of derived benefits.
"If the market is of a scenario wherein there is a net inflow, that incremental money will always keep looking for sectors and stocks which will give good performance over a period of time and which is where we will see the returns coming in from across the sectors and within those sectors across the stocks."