Views of Aditya Narain on the upcoming market uncertainty and how India will tack that
Inflation is one of the biggest concerns that many companies are facing currently, opines Aditya Narain, head of research in Edelweiss Securities.
Aditya Narain has more than two and a half decades of experience in the equity market. He was Managing Director in Citi bank and did his MBA from FMS Delhi. In the recent media interview, he has shared the upcoming uncertainty and sectors on which he is bullish.
Has the market discounted all the uncertainties coming ahead? If so, what are those?
It’s difficult to say all the uncertainties are priced in. Inflation is one of the biggest concerns that many companies are facing currently. To fix that US Fed has taken steps, but India is not mirroring developed market moves, we don’t know whether India is ahead of the curve or behind, that’s the first uncertainty.
How to make Mr Volatility your friend?
Volatility does provide opportunity. When the stocks in sectors or themes which you believe in has come to a reasonable price which has corrected 20-40% just buy it with guts. For Edelweiss they believe in the Technology space which recently got some correction has provided an excellent opportunity and the sector is Banking.
Technology means does it includes new-age companies or the traditional IT services?
From the medium-term perspective, IT services have a great demand. But the aspirational growth-oriented companies have corrected a lot which is quite opportunistic. Fundamentally business looks good, it had a healthy correction but the question is whether it had an adequate valuation.
Is he comfortable with Private sector banks or PSU Banks?
Private banks are much better in scale, size, market penetration and with a clean balance sheet. SBI is one bank that comes under this umbrella but not any other PSU banks below that.
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