Rajat Sharma, Founder & CEO, Sana Securities, says stick to largecaps, stick to stocks where you still see value, be prepared to take a 10-15% dip because even if it happens, it is going to bounce back really sharply. Further, Sharma says he likes FMCG stocks like ITC, Britannia, and Dabur where he sees a lot of value. Earlier, he used to find private banks really expensive. But right now, he thinks Axis Bank and HDFC Bank make a very compelling case to buy.
What are you making of the market right now, given the global construct – not just the Fed rate cut, but the measures from China as well earlier this morning and now our stint with Peak 26,000 and then straight away an 80-point fall from there?
Rajat Sharma: Compared to the way markets have gone up, 80-100 points move is just a blip. These days when I talk to clients and when I invest money, I tell them upfront that 10% to 15% correction from here should not bother you and if it does, then wait before you get into the markets because since April, the markets have run up quite aggressively. We were trading at a multiple of around 22 that time, now we are trading at a trailing multiple of 24 and this is after four years back, we changed how we calculate the price earnings from standalone to consolidated.
If you look at it that way and you had to compare a historic number for the price earnings multiple, then this should be 25% higher. It should be something like 28 trailing multiple. So, we are very expensive. The markets are very expensive. But on the other