Market fears overblown, but investors should remain cautious: Hemang Jani
«Just case in point being Axis Bank, similar kind of restrictions were placed. Once the restrictions were lifted, the operating parameters, operating performance dramatically changed. So, I do think that even Kotak Bank would see a similar kind of growth momentum in the business. The bank has practically underperformed last two-three years,» says Hemang Jani, Independent Market Expert.
What do you make of the market action? We did see some life of come back in small and midcap stocks yesterday. Do you think we have a bottom in place there?
Hemang Jani: The volatility over the last few months has unnerved lot of investors and what is most surprising is that this has happened without any specific external or domestic event which was out of box. So, definitely, there is a sense of fear and while we may see a little bit of pullbacks here and there, as long as the sell flows from the FIIs continue and whatever excesses were there in the midcaps and smallcaps till we reach a certain stage of capitulation, this may go on.
At the same time, I do feel that in terms of price points, in terms of valuations, things have become far more attractive. At what point it will turn around is anybody's guess. But if one has a bit of holding capacity and let us say one-year, two-year kind of a time frame, definitely think one should start accumulating rather than trying to look at a specific level of bottom that everybody is looking to have. So, overall, a bit cautious but time to really buy into the market.
What do you make of Kotak
