Got fresh money to invest? Don’t go chasing momentum; look at quality largecaps: Anshul Saigal
Anshul Saigal, Founder, Saigal Capital, says putting new money in spaces that have done well recently and where you are chasing returns is a fool's paradise. It is that space where an investor can burn his fingers and then be out of the market for the next four to five years and come back again when the markets are at peak. That is not the space to look at now. It is really the Nifty 50 and the large-caps which have relative value. If you want to put new money to use, it is there that you should be investing.
Do you think the underperformance in banks is finally coming of age because while the Nifty is still at a fresh all-time high, so are a lot of other individual indexes, which is not quite the case with Nifty Bank?
Anshul Saigal: Yes, banks have been a rank underperformer in the last six-eight months. While other segments of the market have rallied as they have, banks have done nothing. Some of that is because banks have been in over-owned space in the last so many years. Because they are about 30% to 35% of the index as a constituent, banks are highly owned by the Street and at this time even though valuations look reasonable because of certain headwinds on their operations, banks are not the favoured space.
What we have also seen of late is that while in the last three years, we have seen about 15% credit growth in the system, but if you look at the last two fortnights that credit growth has tapered down to about 13% to 13.5% and largely on account of deposits in the system being slightly difficult to come
