Rajat Sharma, Founder & CEO of Sana Securities, discusses the market valuations, particularly on the Nifty, currently at 21.9. He believes India is a bright spot even in a potential market correction or crash. Sharma says that post election results, on 10th or 12th July we will have the Union Budget and post that, there would be some correction.
Rajat Sharma from Sana Securities provides insights on the real estate market cycle, quarterly performance of auto companies like Hero Motocorp, valuation concerns, the impact of government regulations on tech companies, and the evolving trends in the banking sector. Sharma says one could add two-wheeler stocks, but should not buy them in a big chunk or as a lump sum,
“There is a lot of basket buying in largecaps and in the frontline indices because of which larecap banks are moving up. I am actually a little wary of them. I think they should cool off, correct at some point in future. These are great banks, great businesses. I am not in any way saying there is any problem with HDFC or ICICI, I just find them overvalued right now.”
“Every time Infosys falls, I think you should buy a little more of it and every time it goes up, you should continue to hold because there is no reason to sell these stocks. The growth is intact, the stories are intact. We look at the earnings, but I am not much driven by that, so long as they keep maintaining their growth in revenue and profitability.”
“Panacea Biotech restructured the company around Covid. They have paid off all their debt. It is a debt-free company. They got out of low production markets like India and Nepal, which is where they did their portfolio immunization. And now they are focusing more on developed nations.”