If there is no difference of opinion in the stock market, there won’t be any trade. But when there is a difference of opinion between a ‘blue collar’ fund manager and the ‘Warren Buffett of India’, its tough to take sides. While Rakesh Jhunjhunwala is clear that commodity stocks, steel in particular, are the best bets, Saurabh Mukherjea questions the probability of equity investors making money by betting on commodity cycles. Read their full interviews and much more in this weekend’s edition of ‘Long & Short of Markets’.
Bull vs bear
After a considerable run in commodity prices, the outlook for metal stocks doesn’t seem to be fading away for Dalal Street titan Jhunjhunwala. In this interview, he minces no words in saying that the commodity cycle is going to last for as long as 5-7 years. Star fund manager Saurabh Mukherjea, however, says if you are bullish on metal, buy metal futures and not stocks of metal companies. He argues that these companies struggle to generate return on capital above cost of capital. Read interviews of Rakesh Jhunjhunwala and Saurabh Mukherjea to know why they are rationalising opposite views.
Liquidity rollback mayhem
Although the RBI, like most other central banks, is very clear on its stand on keeping the interest rate low, China which went in and came out of the pandemic the fastest adopted hawkish policies causing tremors in its financial market. Though we are far away from being hawkish, the situation won’t be very different here when other central banks take that path. Here’s more on how China’s change in policy stance impacted financial markets. >>>
How to ride the revival
After a record rally in the pandemic year, the markets are in a consolidation phase. Going forward market experts advise to ride the economic recovery wave by investing in sectors that benefit most from the revival. Anshul Saigal, CIO at Kotak PMS, says that sectors and stocks with high linkage to business cycle and having high operating leverage are likely to outperform. Read here to find out which stocks and sectors you should invest in, according to three fund managers. >>>
Mediterranean turning into Cape Horn
After a smooth sailing in the pandemic affected year, it seems like the calm Mediterranean waters have turned into stormy Cape Horn. As the benchmarks are in a consolidation phase, Nifty rollover data signals investors may have to tolerate stormy waters for in next month as well. Rollover data suggests IT and private banks could prove risky for bulls. Here’s more >>>
The goose ran out of golden eggs
It seems the days of making easy money on IPOs are getting over on Dalal Street. With market volatility fears spreading, IPOs are seeing tepid listing gains even after receiving multiple times subscription. Hemang Jani of Motilal Oswal Securities said some companies are becoming greedy in terms of IPO pricing. Here’s more on the IPO mart. >>>