Anil Singhvi, Managing Editor, Zee Business, says, the market is performing as expected and it is a situation like Kumbh Mela that happens in 12 years where everyone wants to take a dip. During a candid radio chat with RJ Salil Acharya, Radio City, 91.1 FM, Mumbai, Mr Singhvi said Textile and metal stocks are two areas where people can invest. At the same time, they can buy ITC when it trades around Rs 210.
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Starting the radio chat, RJ Salil said, the market is in a very strong position and Nifty has crossed the 15,300-mark and Sensex has comfortably crossed the 50,000 levels. To which Mr Singhvi said, the market is performing as expected and as we were talking that if that even a slight decline in CORONA cases will add a rocket to the market and will not come in the hand.
Have a look at the MidCap and SmallCap; there has been a boom in these stocks in April and May. This is like a Kumbh Mela that occurs once in 12 years which see a large crowd and such bullishness is visible in the market, everyone is taking a dip in this flow.
Continuing the radio chat further, RJ Salil said, I have read somewhere that the Indian currency has strengthened itself in Asia. Do you think that this is also benefitting us in terms of exchange and other avenues? Citing a strong consumer demand in the US and Europe, Mr Singhvi said, the consumer demand is very strong in these companies and the situation is such that slots are empty there, there is a shortage of products and people are ready to stand in cue to buy the products. In fact, there is a strong recovery in these economies.
So, the Indian companies, which supply to the US and Europe, any kind of products are posting healthy results. And, in return for what they are exporting, they are getting dollars and when a lot of dollars are coming in plenty then it is obvious that the Rupee will be strengthened. So, our currency is gaining strength. But the good thing in all these things is that the earnings of our companies are increasing at a great speed and along with this the rupee and these companies are getting benefitted from this.
In his next question, RJ Salil said, normally it is seen that when fast recovery starts then certain questions are asked from the RBI related to control the liquidity as well as inflation. There are certain questions that can have an impact on our growth and stock markets. Are you expecting any such event in the next one to two months from the RBI where decision-related to either liquidity crunch will be increased or it will be controlled? To which Mr Singhvi said, so far, it seems that everything is in the control of Mr Shaktikanta Das. So, it is not a matter of concern, yes there is something on which he has an eye and it is inflation because the core inflation from food inflation to the worldwide increase in commodity prices maybe it is metal, tea or coffee, sugar, yarn, soft commodities, wheat among others, the prices of everything is increasing. So, there is inflation, which is definitely a challenge for us in the time to come. So, if RBI Governor is having his eye then it is on our and imported inflation. On the front of liquidity, I think, the situation is quite comfortable and is under control. Maybe, we have less or more money in our pockets but there is enough liquidity in the system.
In his next question, RJ Salil asked about the specific stocks where one can invest. Mr Singhvi said, of course, that good action is visible in many stocks and sectors. I will still advise you to buy textile stocks as they may gain strength further, so you can make purchases here. The second space where you can get a chance to buy and it is metals, as a good correction has happened here and you can buy stocks like Vedanta, which is trading around Rs 270-275 in metal. Banks are attractive yet and there is no doubt in it, Stock like ITC trading below Rs 210 is giving a good opportunity to buy. But if you want to buy small stocks then textile is the best option which will gain speed.