Anil Singhvi, Managing Editor, Zee Business, says, any fall in the markets due to a surge in corona figure is an opportunity to buy. During a candid radio chat with RJ Salil Acharya, Radio City, 91.1 FM, Mumbai, Mr Singhvi suggested two stocks, Glenmark and Philips Carbon Black, one each from the pharma sector and metal sector.
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RJ Salil started the radio chat by saying ups and downs have been seen in the stock markets in the last 2-4 days but the rising cases of corona in Maharashtra and other parts of India were responsible for it. But the markets have bounced back, and it is like what Mr Singhvi, Managing Editor of Zee Business, has been saying that these are speed bumps. To which Mr Singhvi replied by saying they are small hindrances and speed breakers, this is not a case of a U-turn. If there is a fall in the markets – due to the corona figures then this is an opportunity to buy. Just recall, what is the difference between last March-April and now, then we had nothing and today, the vaccine is there.
Continuing the chat, RJ Salil said, a lot of questions is being raised on the Q4FY21 results. These are going to be the main results and the euphoria that we had was felt till December. A lot of business has happened in the last six months, between September-December and January-March, but not everything is perfect. So, what can be the expectancy? Mr Singhvi said, there will be bumper and super hit results will be presented this time and the reason is the updates for Q4FY21. In fact, the proper three months from the perspective of business – after lockdowns took place after the corona – were January-March. Now, the business updates being released by the companies and the banks are just fantastic and are power-packed. So, the results are going to be very strong. And in that sense, the market will be full of excitement. If the surging corona figures and selling from FIIs will not allow the market to stick to the upper levels, then the expectation of good results and strength of the global markets will lead to buying. This is a reason that the market will remain range-bound in the range of 500-600 points. But there are plenty of opportunities to earn in this range from the stocks.
To which, RJ Salil said, I have seen few recommendations from the RBI yesterday. So, do you think that this will have any impact on the banks, or we can restart focusing on the financial companies? Mr Singhvi said RBI Governor Shaktikanta Das has presented one of the finest policy. He had a special focus on one word that we will remain accommodative as far as it is necessary. That is, we will not allow interest rates to rise in the system, liquidity will not decrease, there will be a focus on growth and will try our best to keep inflation under control and this is what the market wants. In fact, it seems that the RBI policy has increased the enthusiasm a bit more.
RJ Salil in his next question said, a lot of changes are coming and there is an expectancy that Q4 results will be good for all the companies, as Mr Singhvi has said. So, some changes can be made in our portfolio now as per the changes in the RBI policy? Mr Singhvi in his reply said, do not talk about subtraction, what you have should be kept as they are going to grow. And if you have more money, make fresh purchases, new ideas. Old ideas are there in place and you have to hold them, for example, revolution is going on in the pharma stocks, they keep calm for few days and then come up with a sense to revenge that we just forget to grow, we have to grow again. So, there is a stock from pharma space, Glenmark, available at around Rs 500 and you can buy it and hold it. Secondly, there is a tremendous pace in metals, so a lot of action can be seen in the small sectors associated with metals. Phillips Carbon Black Ltd. is another stock. You can buy it for around Rs 200-205 from the perspective of investment.