Exit stocks that have run their course, be 80-85% invested & keep cash handy: Sandip Sabharwal
Sandip Sabharwal, asksandipsabharwal.com, says to identify stocks that have run their course. Sabharwal exited railway stocks, Tata Motors, cut down one or two other holdings, and is holding some cash on the sidelines. He says investors should be 80-85% invested, keep the rest in cash, and wait for opportunities that markets will provide. All stocks do not move in the same cycle. So, some sectors will underperform at some time. It will allow you to buy into them. So, that has to be the strategy now. It does not look like we are going to have a straight-line up-move from here on. We need to time to enter into our opportunities and hold on to them.
Piramal Pharma, for three quarters in a row, has been showing improved performance and is almost back to Rs 200, the price before it got demerged from the main company, fell to Rs 60, and then clawed back to almost Rs 182-185. Your view?
Sandip Sabharwal: Not specifically. But overall, if you monitor pharma sector results this year. You will see that they have also benefited from low chemical and input prices. So, across the board, the margin improvement in pharma companies and result delivery is much above expectations. It is an industry phenomenon and those tailwinds would remain for some more time.
Where are some of these so-called brokerage and financial intermediaries headed now? The bull market is intact. SIP is intact. M&As are happening. Block deals are happening. IPOs are happening. Good time to revisit an I-Sec or Motilal Oswal?
Sandip Sabharwal: Motilal Oswal
