Don’t take maximum risk now; for this cycle, maybe the market has already topped: S Naren
S Naren, CIO, ICICI Prudential AMC, says India has the potential to grow, and Indian markets can perform well over the next decade. However, each market cycle has a peak, and it’s possible that we have already reached that peak this time. This doesn’t mean that India won’t provide returns in the next 10 years. The issue is that we might have already seen the highest point for this cycle. Additionally, there are constant policy changes worldwide that even the best research firms struggle to predict. These factors create challenges, which is why it’s important to be cautious with risk right now.
A year ago, there was a lot of value in PSUs, in power and power utilities. Where is value in this market? S Naren: It is tough to find value. It is tough to find deep value. We have moved out of the deep value syndrome and are looking at relative value. We find relative value in banks and feel very happy because relative value is there in banks. We know that after four years of very bad relative performance, there is at least some amount of capital protection in some of the staple names.
We also believe that we cannot lose big money in telecom. There is a lot of relative value. I do not think we are in a phase at this point of time where you have this concept of value which we had four years back. That is not the situation now. That is the reason we are recommending asset allocation.
Otherwise, we will recommend equity in a big way. It is such an opportunity lost if 20 minutes of time is lost and we are telling at the most
