Time to turn cautious on realty stocks; no plan to exit these 3 auto stocks: Sandip Sabharwal

economictimes.indiatimes.com:

Sandip Sabharwal, asksandipsabharwal.com, says “the market is becoming tougher and tougher, that is the issue, because whatever you held and you thought it should move up, those stocks have moved up too much. On the largecap side, Maruti still has legs and could go higher. L&T after the correction on the Saudi Aramco postponement of orders, could, as that has corrected 10% from the top and that could open with some upside. On the midcap side, we have bought V-Guard Industries. It is at the same level. It has not moved at all because people are not yet confident in the consumer durable story. That looks like a reasonable low volatility bet to me.”

Sabharwal also says: «We own M&M, Maruti, as well as Tata Motors, and we continue to hold and have no intention of selling in the near term.»

With all that is happening with NVIDIA stellar moves, largest single day gain in history. What is it that you are making of tech in particular and the kind of strides that we have made here?
Sandip Sabharwal: Technology is a great story, but in innovative companies which exist either in the private space in India or in countries like US, Korea, etc.

So, although as a follow through or a correlation to the Nasdaq moves, we see technology stocks in India also move, but they have hardly anything to do with AI at this stage. In fact, they have businesses which will be hit by AI as the generations move forward. However, most people see it as correlated and to that extent create some upsides in the short term.

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