End of pain? Portfolios churning from momentum to value-driven quality stocks now: Deven Choksey
Deven Choksey, MD, DRChoksey FinServ Pvt. Ltd, says we appear to be passing through a painful adjustment phase in the market and we could be at the end of the pain. As of now it appears that the portfolios are shifting into quality stocks. When the markets were surging, most of the funds, including the family offices, were carrying the momentum portfolio, which they are swapping now into the value-driven stocks by selling some of the expensive stocks and that is one of the reasons we are seeing continued pressure in some of the mid and smallcap companies.
What is it that you think the market is up to because yesterday's FII sell-figure was a little bit discomforting and quite large at Rs 6,000 crore.
Deven Choksey: The summer has already set in as far as the market is concerned. It is quite hot out here, suffocating. So, nothing new. FIIs continue to deliver their shares in the cash market. Having done the transactions and the short sold in the derivative market, the deliveries are now happening in the cash market. What we are seeing in the delivery figure in the cash market out there, whatever the hedge or the short sell that they have done is definitely creating a larger amount of panic in the market.
Coupled with that, most of the global funds, as well as the large investors, the family offices are probably shifting their portfolio from the expensive valuation stocks to the value stocks which are available in the market today. During the times of momentum, probably most of the funds, including the family
