Where should you buy the dip in this market? Sunil Subramaniam answers
Sunil Subramaniam, MD & CEO, Sundaram Mutual, says “IT, pharma, metals, global cyclicals, energy would be the ones where you would see rapid rises and falls. I would say that if something has gone up very rapidly recently, that is where the decline would come because they are a lot related to news flows and less fundamental related in terms of what actual quarter on quarter numbers are coming in. ”
Markets will not go up in a straight line, not will they go down in a straight line. But there are a lot of stocks which have only gone up. Defence, railways, Chandrayaan stocks. If markets have to correct, where do you think the decline would come from? And where would you like to buy that dip in terms of finding value?
I would say that the decline would come from 1)globally related sectors, one because that is where the news is very confusing whether it is a hard recession, slowdown, soft recession or rate hikes.
So IT, pharma, metals, global cyclicals, energy would be the ones where you would see rapid rises and falls.
I would say that if something has gone up very rapidly recently, that is where the decline would come because they are a lot related to news flows and less fundamental related in terms of what actual quarter on quarter numbers are coming in. I would expect to see an extreme period of volatility. The other place where one has to be a bit wary is referred to in the answer to the previous question also, that in the infra related pack.
We have seen the whole story of government driven infra, the PLI, the Greenfield capex happening because capacity is rising.
