If we had to see a follow through on Monday
Mkt volatility an opportunity to buy
canada goose clearance As a fund house we expect 2015 to be a year of volatility, and if the volatility is because of international factors then one must invest throughout 2015 to make money in 2018 is the word coming in from Nimesh Shah, MD CEO, ICICI Prudential. canada goose clearance
According to him this technical correction is canada goose outlet reviews an opportunity to buy canada goose outlet black friday and more so because historically, it has been proven that whenever foreign insitutional investors (FIIs) have sold and domestic institutional investors (DIIs) have bought, they have made money.
Canada Goose Jackets Moreover, the correction also reminds an investor that there is risk in the market and that they need to get their asset allocation right, says Shah in an interview to CNBC TV18. Canada Goose Jackets
Talking stock/sector specific, Bala is bullish on private banking space, the FMCG space, within those spaces on ICICI Bank, Axis Bank and HUL. He also likes the auto space and thinks Bajaj Auto may have bottomed out and could see revival.
According to Bala ITC and HUL are set to turnaround and head towards record highs. Bala believes if 9000 levels on the BSE oil and gas space holds then there is high degree of probability that the sector will see a turnaround.
Shah says the fund is overweight on technology and private banks. A strong dollar and the fact that western world is doing well is likely to benefit technology. However, he is bearish and underweight on consumption stocks.
Infra a good bet from a three year time frame because it is dependent on government spending, says Shah. He is canada goose outlet new york city not expecting great numbers from the infra space for the canada goose outlet online current quarter.
Canada Goose Outlet From the midcap space, Bala is upbeat on canada goose outlet online uk Aban Offshore and Bombay Burmah Trading Corporation. Canada Goose Outlet
Below is the transcript of Nimesh Shah and Jai Bala interview with Anuj Singhal and Ekta Batra on CNBC TV18.
uk canada goose Anuj: What do you make of the recent volatility and as someone who heads a canada goose outlet nyc large domestic mutual fund how do you view the current situation where foreign institutional investors (FIIs) are selling and domestic institutional investors (DIIs) are buying on a daily basis? uk canada goose
canadian goose jacket Shah: We are quite happy with the volatility. If you ask me, we always look at volatility as an opportunity. In fact we have got set of funds which only work on the benefit of volatility. canadian goose jacket
canada goose store In India, historically if you see, whenever FIIs have sold for some technical reasons or problems in the West, when they have to sell India that is the best time to buy India. That is what we canada goose outlet uk sale have always felt and it canada goose jacket outlet is proved canada goose outlet canada historically that whenever FIIs sold if one buys there canada goose outlet store is a good chance of making money. So, this technical correction was very good. It will remind investors also that there is risk in the market. They need to be careful when they are investing. They did need to get their asset allocation right. canada goose store
cheap canada goose uk As a fund house we have always had this view that 2015 we expect lots of volatility to come because of international factors. If volatility is because of international factors, invest throughout 2015 to make money in 2018. That has been our stand even four months backand that is what we have been saying even today. So, this correction to 27,000 looks very healthy to me. cheap canada goose uk
Canada Goose online Ekta: You benefitted from a lot of opportunities this week in terms of a lot of stocks looking quite valuable in terms of valuations. Which were the sectors that you possibly nibbled into? Canada Goose online
canada goose coats Shah: We have been or are going overweight in technology. We are overweight on private banks. So, those are the sectors that we like. Technology we have given a big call to our investors that invest in technology. Technology has corrected around 10 percent in the last one month and so with a stronger dollar and western world also doing well, technology companies are set to gain. canada goose coats
We believe this correction in technology companies since last one week is good. We have always been bullish on private banks. The nature of our funds are such that since we take cash position, whenever the price to book ratio of the market goes down, we go out and buy. Some of our funds are structured that way. So, technology and banking are the sectors that we are overweight on.
Anuj: What do you make of the Friday pullback and is that indicating a bit of near term bottom formation or you won be that sanguine on the market?
canada goose clearance sale Bala: When we spoke about the markets in February and March, we were talking about raising cash and the markets were approaching 9000 levels. On the day of Raghuram Rajan (RBI) cut rates we were saying that the market is starting a big correction and a 10 percent correction has come through. We were one of the very few guests on your channel who said that the market will break 8000. canada goose clearance sale
Canada Goose Parka The move to 7997 in fact works very perfectly with the technical structure and very likely that it has put in a durable bottom and this bottom is very likely to hold from a technical point. However, we have other factors too to reiterate this view. Whenever there is bearish move on the market and fundamental analysts come up and are able to spell out A,B and C reasons, it is very high probability that since it is a bearish move, they are able to spell out reason why the market could go down. We have even heard analysts say 7500 7000. Canada Goose Parka
Canada Goose sale So, it is very high probability that they are talking about the move that is happened in the past. So, I am of the view that the canada goose outlet uk markets are heading for fresh record highs. 9100 will go and there is a very high degree of probability that we adopt the adage buy in May and go away. Canada Goose sale
Ekta: If you are envisaging 9100 or maybe even surpassing that level on the Nifty, give us a sense in terms of a timeline that you would be working with and which would be sectors or the stocks that would lead it higher?
Bala: I think the Bank Nifty is going to lead the way once again. That is one sector I am positive on. Within the banks I canada goose outlet jackets am positive on the private banking space. If you look at the BSE oil and gas canada goose outlet store uk space, the 9000 level on the BSE oil and gas space is a very important support. I think that is going to hold. If we had to see canada goose outlet a follow through on Monday, there is a very high degree of probability that this sector is turning around.
Canada Goose Coats On Sale Also, if you look at the BSE FMCG index, 7500 is a very significant support. If you look at individual stocks within that space like ITC and HUL they are also looking like they are set to turnaround and head towards record highs. So, these are the sectors and individual stocks I am positive on. Canada Goose Coats On Sale
canada goose uk outlet Anuj: Let us talk about the consumption space. We will not get into individual stocks but we saw HULs numbers, they looked quite good and the market rewarded that. However, overall consumption pattern has been showing slowdown whether canada goose outlet it was reflected in Titan numbers or whether it was reflected in Hero MotoCorp numbers. What is that telling you about the overall consumption growth and overall earnings growth going forward? canada goose uk outlet
canada goose uk shop Shah: We have been always bearish and underweight on consumption stocks. So, when somebody asks me, whether one year back or even today that what are we underweight on, we have always said that consumption we are bearish on. What we are seeing today is a transition that is canada goose outlet shop happening in the economy where essentially a consumption led economy has to at some point of time migrate into an investment led economy. Overall we have always been underweight consumption in the last two or three years because we believe they are expensive stocks. Most of them are 40 or around 40 PE and we find them expensive. canada goose uk shop
Ekta: I just wanted to concentrate a little on the earnings picture which Anuj alluded to. We heard the Punjab National Bank (PNB) management talk about how majority of their restructured portfolio, in fact 40 percent, came from the infrastructure space and we have all the infra companies to still report numbers. How bad do you think it could look?
Shah: Since we official canada goose outlet are a mutual fund we would be on a three year call. Three years we believe, if somewhere we are getting stuck or http://www.mycanadagoosejacket.org our call is going wrong it is on the infrastructure space because we had given the calls six months back also, nothing has happened. Till now also we believe the economy has bottomed out, nothing can get worse than what is happening right now. However, the good thing is financial macro economic factors are good. So at some point of time huge government spending has to come. The private sector is not investing, the government has to invest and bring canada goose outlet sale the cheer back or bring the economy back on rails. So, we are waiting for the government to invest. I think that we should see it buy the end of year canada goose outlet parka that government has to invest big time because private sector is not investing.
So if you canada goose outlet toronto factory have got a three year paradigm, the infrastructure sector is good. Having said canada goose outlet in usa that the canada goose factory outlet challenge is in the canada goose black friday sale infrastructure sector has not gone and we are not very bullish about the results that are going to come in this quarter.
buy canada goose jacket cheap Anuj: That is a big call that you are taking that the market would now go back to all time highs. What are the three largecap stocks that you think one can buy now buy canada goose jacket cheap.