Look for companies succeeding in a tough market; okay to buy Zomato, Swiggy with 6-12 months’ view: Hemang Jani
Hemang Jani, Independent Market Expert, says even as we discuss if the valuations are accurate, companies that are doing well and have a solid business model will eventually benefit investors. It's important to identify companies that are succeeding in tough market conditions, whether they are in banking, automotive, or consumer technology.
Jani further says that for some of the platform companies, the story is over. Maybe a bit of a cool-off was required. There is massive selling by the FIIs which were holding some of these stocks. But from a 6 months, 12 months kind of perspective, these remain very interesting themes and particularly Zomato and Swiggy are the names I am pretty comfortable buying into at around current levels.
What do you make of this week's price action? Nifty is outperforming. The Bank Nifty is outperforming. But mid and smallcap stocks continue to remain under pressure.
Hemang Jani: For Nifty and largecap stocks, we have a decent bottom in place. There is a lot of resilience around these levels. Anyway, we were going with very low expectations when it comes to results in the global backdrop. So definitely there is a sense of stability there. As far as the broader market, midcaps and smallcaps are concerned, we have seen a good amount of carnage and the stocks have corrected 30% to 50% also.
So, there one will still have to take a stock specific view, wherever the companies which are delivering good numbers and have corrected maybe 30%, surely there is a good amount of opportunity and they
