At a time when the markets have been stuck in a narrow range for the last eight weeks after claiming record highs, it has been a playground for traders largely looking for some swings to make money, however, long term investors have been on the edge, cautious about the steep valuations. Sanjiv Bhasin, Director, IIFL Securities spoke to Money9 and shared insights on how should investors approach a scenario that is a tug of war between the bulls and bears.
“Investors waiting on the sidelines for a big correction will be in for a surprise”, he said adding that he has seen the likes of Tata Steel and Ultratech Cement touch record high for the first time in the last twenty years. Zomato touching a valuation of Rs 1 lakh crore. While there may be some froth building up, he believes, this is the market where investors will make money.
Bhasin believes that equity cult is in the making and the markets today belong to Robinhood traders and not institutional investors.
“The new package by the European Union of printing money is going to be used for buying more bonds. There is going to be a war of liquidity. Equity and commodities are having the best time. There may be churning of men from the boys but India continues to be a resilient market’, he added.
He suggests investors to choose the means of their comfort, do a SIP (Systematic Investment Plan) in stocks or buy mutual funds but not miss equities as an asset class in their investment portfolio.
The one theme he is bullish on is that consumption spending is going to be back with a vengeance.
“In six months you will not get a plane ticket or a hotel room. We are going to see revenge spending take place. Unlock trade is going to be huge, I’m bullish on aviation, hospitality and entertainment over the next one year”, said Bhasin
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