Buy and hold not working now; it pays to be nimble, says Manish Gunwani. Here’s what he is betting on
Manish Gunwani, Head-Equity, Bandhan AMC, says while they own PSUs, they do not trust any single PSU too much, because the government has a habit of changing regulations periodically. So, they have a string of pearls in select PSUs, 1-1.5% kind of holdings. Gunwani says Bandhan AMC’s bigger overweights right now are healthcare, internet, and telecom on the defensive side and real estate, power, and capex-related stocks on the cyclical side.
What do you make of the construct of the market? We had a scary fall on Monday and looks like a lot of collateral damage has already been done.
Manish Gunwani: I would prefer to be a bit cautious. A lot of returns are being made in cyclical sectors and tactically it is because of valuations and the Indian rupee has also outperformed a lot. Also, given the election result, the policy focus is still to be seen. So, overall, in a bull market, there are periods where one needs to be tactically cautious. We will go through some consolidation. I do not expect any big drawdown because liquidity looks fine.
The dollar has a bias towards weakening rather than strengthening. So, as long as one is negative on the dollar, I do not think you can be very bearish on the market. But yes, we are seeing a lot of supply, IPO pipeline, QIPs, etc, and therefore, it is very healthy for the market to go through this because no one wants an extreme boom-bust kind of cycle. So, probably the best thing to happen for the market is just go through a consolidation phase and that is what hopefully we will
