Ups and downs are part and parcel of equity investing, and one should not be too worried about the weakness being seen on Dalal Street over the past few days after the mega rally. An elevated market will always have a lot of risks and investors simple cannot avoid them. Currently, besides high valuations, fresh Covid breakout, a spike on bond yields in the US, spike in oil price and thus inflation, possible rise in the dollar and an imminent normalisation of the Covid time stimulus measures are being seen as possible risks to equity markets.
ETMarkets’ Amit Mudgill caught up with Sunil Singhania, Founder at Abakkus Asset Manager, to understand some of these risks to the ongoing bull run.
Mr Singhania, welcome to the show!
1) From vaccine rollout to earnings rebound, things are improving on most fronts. What is the key risks that you see in an elevated stock market like this?
2) In a rising market, taking decisions on ‘when to sell’ stocks is usually more difficult than buying stocks. What would be your advice to investors?
3) Which are the pockets that you think may outperform the market going ahead?
4) Earnings growth is set to surge ‘optically’ from March quarter results. As such, do you think demand outlook would be more important than say doubling of profits? What should one look at?
5) We are in a bull run, but which part of it are we in? At the beginning or towards the end — or somewhere in between?
6) With the pace at which economies globally are recovering, do you think stimulus would be short-lived and, thus, there could be threat to foreign inflows to India?
Thank you Mr Singhania!
That’s it in this week’s edition of the special weekend podcast. Do come back next Saturday for this weekly special. You can meanwhile check out our regular podcasts on the equity market twice every weekday. Our podcasts are also available on Spotify and Gaana platforms.