In the short run, cap the bottom
In this interview, Kunj Bansal, CIO at Karvy Capital, advises different approaches for short term and medium term investors. He calls for a strict stop loss based trading for the short term and buying every dip for the medium term as we’ll see recovery eventually.
Read here for more on his outlook on automobiles, consumer durables and capital goods sectors.
Themes to play the recovery
During this rage of the second wave of Covid and lockdowns, it’s better to bet on stocks that have nothing to do with the pandemic, says Amish Shah, MD, BofA Securities. Defensives such as IT, pharma are the best sectors to play this theme. But once the recovery starts, cyclicals will be back in favour, says Shah.
Read here for more on what’s the binding theme for all these cyclical sectors to move up.
China’s ‘green’ move to blow commodities’ ceiling?
Commodities have rallied in the past few months on the back of demand-supply mismatch. The outlook for metals is shining bright on the back of a strong demand in steel, copper and aluminium. China’s move towards lowering production of pollution causing goods can only disrupt supply channels. Manish Gunwani, CIO – Equity Investments at Nippon India MF, says that there is at least 20-30% upside left in a lot of these commodity stocks, in terms of free cash flow yield or EV to EBITDA multiples.
New triggers for RIL
In the past 7 months, Reliance Industries stock moved just 2 per cent whereas the benchmark indices rose 25 per cent. But now it seems like all stars are aligning for RIL’s grand awakening.
Read here for the likely triggers for Mukesh Ambani’s company.
Into the minds of legendary investors
William Green, author of ‘Richer, Wiser, Happier: How The World’s Greatest Investors In Markets And Life’, says super investors played only those games they could win. As Buffett says, “how do you beat the legendary chess player Bobby Fischer? Play him at anything but chess!”
Here’s more on the minds of super investors.