Patience! That’s the broader sense one gets in some of the tweets market leaders put out through the week.
Value investor Arun Mukherjee said markets reward only those who are comfortable getting rich slowly.
Markets attract those who want to make quick money but rewards only those who are comfortable getting rich slowly.
— Arun Mukherjee (@Arunstockguru) 1599881562000
In another tweet, he said markets are unforgiving and one must be quick to change stance on the presentation of new information. “Inflexibility is a crippling disease (in investing),” he said.
Markets are unforgiving. Be quick to change your mind when facts change. Inflexibility is a crippling disease. Ther… https://t.co/THKYGJqoIV
— Arun Mukherjee (@Arunstockguru) 1599589275000
With things looking bleak for the economy, independent market expert Sandip Sabharwal was quick to point out that earnings growth projected that analysts have built in for the full financial year will be an impossible feat given the GDP contraction.
It is now accepted that GDP this year will decline between 8-12 % (Depending on whether you are pessimistic or opti… https://t.co/R1uj9TUZPA
— sandip sabharwal (@sandipsabharwal) 1599559477000
The new Sebi norms for multicap funds evoked mixed feelings on Dalal Street. While midcap and smallcap investors are suddenly smelling a big opportunity, some others – including mutual fund industry leaders – seemed to be in two minds. Some fund houses even talked of using alternative ways to dodge the googly.
Sabharwal said it’s not real buying by mutual funds, but the anticipation of such buying combined with some sentiment change which could drive many smallcaps up 25-100 per cent very fast.
What many don’t realise is thatNo one wanted to touch Small CapsSo it’s not the fund buyingBut the anticipati… https://t.co/8J8b9yyVq2
— sandip sabharwal (@sandipsabharwal) 1599920133000
RIL was the talk of the town, especially in the later part of the week, after reports that the conglomerate was readying for a Jio-like deal spree for Reliance Retail. While some analysts expressed doubt if the stock has gone up too far, Arun Mukherjee says there is huge value in the stock and the company will deliver over the next decade.
#Reliance Industries: Listed in 1977, an investment of Rs 10,000 in the company during its IPO, would have been wor… https://t.co/rC1CzVKwrj
— Arun Mukherjee (@Arunstockguru) 1599726406000
And the contrarian views are as strong. Independent market expert Ambareesh Baliga says RIL shareholders are not realising that existing shareholders will suffer from holding company discount when its two arms – telecom & retail – get listed separately.
Market is excited about #RelianceRetail which is expected to go #Jio way for #fundraising. However do… https://t.co/OlAylCJoZy
— Ambareesh Baliga (@ambareeshbaliga) 1599713363000
Commenting on sector-specific moves, value investor Abhishek Basumallick says the private banks story will not run out of steam. He says Covid-19 does not change the decadal opportunity for the private sector banks to keep gaining incremental market share.
Incremental loan share of PSBs was down to 20% in 2019 from 75% in 2012.Covid-19 does not change the fact of the… https://t.co/061kbNkgWC
— Abhishek Basumallick (@a_basumallick) 1599651520000
Meanwhile, iThought co-founder Shyam Sekhar says value is emerging in the telecom space. But he was quick to remind investors that even the big boys have gone wrong in this space.
#Telecom is going to be a big economic driver. The space is sure to deliver for the economy. How to play it, whic… https://t.co/4DUs3PxO6Y
— Shyam Sekhar (@shyamsek) 1599461187000