Market Masterclass | Motilal Oswal’s Hemang Jani has this advice for first-time investors

Bull rally usually continues for 4-5 years and we have just seen the first year of it so far, according to Hemang Jani, Equity Strategist and Senior Group VP at Motilal Oswal Financial Services.

While speaking on the market outlook with respect to the current state of the economy. he said high frequency data points like the GST collection, the auto sales, electricity consumption data and the volume growth in UPI transactions all point out to the fact that the economic revival is well underway.

Going forward, he said he expects EPS growth of 28% in FY22, which will ultimately lead to a good potential upside from the current levels on the Nifty.

He also believes that the broader markets while have outperformed the benchmarks and do tend to do better in times of economic revival, there are select companies only that do remarkably well. He says it is critical for investors to evaluate the space and then invest in quality names.

The second wave of Covid-19 does present a risk for markets and the economic revival. However he said that thankfully, the wave is confined to few states and cities which is a comforting factor and the lockdowns not being as stringent as before is being comfortably digested by the markets.

“Investors must look at the earnings with the view that not just in the current quarter, but also the long term growth visibility if is positive that’s where one needs to focus”, he said

Jani said he is bullish on metals, cement, healthcare and auto sectors.

Watch the full interview to know about the stocks he is betting on: