Is it time to revisit IT stocks after a tough two-three year period? Sanjeev Prasad answers
«So, the conclusion, a lot of investors have probably drawn from whatever they have observed in the last three years and that is the reality for them, is that you will always make money in the market,» says Sanjeev Prasad, Kotak Institutional Equities.
The party continues. I guess this one line captures the market mood at all. The party continues. The point is, how long will it continue?
Sanjeev Prasad: It will continue. Good for everybody, I guess. What do you want me to say on this thing? I mean, I am not a forecaster who can forecast where prices will go or where things will move. The job is to forecast value or rather I should say estimate value, not forecast prices.
So, how long do you think the market will continue to disregard value?
Sanjeev Prasad: Again, who knows? I mean, as of now, you have a bunch of price bidders, if you can use that term in the market and their view of the market is based on what they have seen in the last 1 month, 3 months, 6 months, 12 months, 36 months of very high returns.
So, the conclusion, a lot of investors have probably drawn from whatever they have observed in the last three years and that is the reality for them, is that you will always make money in the market.
You will always make large amounts of money in the market at all price points and you will make even larger amounts of money at all price points in midcap and smallcap stocks.
So that is the narrative in the market, that is something which has got embedded in the minds of investors and nothing right or wrong
