Deepak Shenoy wants to buy LIC & BSE on further fall. Here’s why
Deepak Shenoy, Founder, Capital Mind, says “I believe longer term, LIC is still a good play. Even from here, the fourth quarter is likely to be pretty good because they recognise a certain set of revenues only in the fourth quarter related to their participating policies, the 7.5% of profit that they will share with shareholders is taken out entirely in the fourth quarter, so that will be a fairly large chunk to add. Also we are still buying BSE because despite what happened recently in terms of SEBI giving them a notice about paying up for the options volumes on a notional basis rather than on a premium basis, they have increased their rates and perhaps are going to recover any future charges from customers directly.”
What do you attribute this kind of volatility in the markets to? Is it just nervousness and lightning positions ahead of the elections?
Deepak Shenoy: I think election plays a part, but a role is also being played by global dynamics. For a long time, we have not seen too many global event changes impact us meaningfully. There is a war in the Middle East. The Russia-Ukraine war continues. While we have been lulled into a sense of that this is not major, any of these things could change at any time. There are elections underway in India and are coming in the US. There are talks of significant capital gains, regime changes in the west, not just talks. They have actually proposed them in the Canadian budget today.
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