ETMarkets Smart Talk- Avoid FOMO! Most retail direct investors have missed the rally from April 2023 till date: Jiten Parmar

economictimes.indiatimes.com:

“Most retail direct investors have missed the rally from April 2023 till date. And hence must avoid FOMO,” says Jiten Parmar, Co-Founder, of Aurum Capital. In an interview with ETMarkets, Parmar said: “Invest with a margin of safety and only in companies which have valuations on our side and where Corporate Governance is good” Edited excerpts:We are seeing some nervousness as we hit fresh record highs on the Sensex and record closing high for the Nifty. What is causing the nervousness? We have hit new highs.

There was some nervousness before it actually hit a new high. I think the primary reason was the ‘monsoon’. Now with the advent and decent spread, markets seem to have shaken that worry.

We have been positive on the Indian markets as the Indian economy has been doing well compared to all other major economies. A shining armor, if you will. New highs generally don’t mean much to us.

We are extremely focused on what we have and what we want to buy or sell. What is the kind of impact you see on sectors after PM visit to USA? Do you think Make in India could get some additional boost? I think it was a historic visit. We see many benefits. Defence sector is an obvious beneficiary.

At the same time, we have to be cognizant of the valuations of many stocks in the sector. A lot of the good news may be priced in. So, tread with care.

The risk-to-reward ratio may not be in favor of many. ‘Make in India’ can definitely get a boost. We are entering a phase where we can manufacture for the world.Where do see the markets in 2H2023? We generally avoid making any short-term predictions.

We think it’s a futile exercise. We must learn to focus on individual businesses/sectors. We have positioned our coverage on stocks/sectors in 2