Decoded! Anil Singhvi explains how to make money as markets rally

The domestic indices on Tuesday displayed some interesting trends. Different shares in the same sector were behaving differently. For example, in aviation sector, SpiceJet shares were up by 10 per cent while Interglobe Aviation (IndiGo) saw a decline of 6 per cent. This puts the investors in a difficult spot as it becomes tough to predict future trajectory. Is there money to be made in such a market scenario?  Read on.

Zee Business Managing Editor Anil Singhvi explained that usually investors look for other stocks in same sector if one of them rallies. He said that if SBI share price goes up, investors try to identify other banking stocks which can show similar trends. 

WATCH | Anil Singhvi's take

एक ही सेक्टर में शेयरों में अलग-अलग एक्शन क्यों…अनिल सिंघवी से जानिए, तेजी में पैसा बनाने का मौका कैसे नहीं होगा MISS#EditorsTake #NSE #BSE #Sensex #Nifty #BankNifty @AnilSinghvi_ pic.twitter.com/qCvHTwfdkc

— Zee Business (@ZeeBusiness) June 9, 2020

Anil Singhvi decoded the quirky current market scenario. The market guru said, “There are two reasons why stocks of same sector can behave differently – First, there could be news about it, which reflects in the share price. Second, it could be because of the quarterly results. This is the time when both things are doing the rounds. There are lot of reports being spread." 

WATCH Zee Business TV LIVE Streaming Online 

Singhvi also underlined the importance of fund managers in this situation. Explaining how sectorial churning works, Singhvi said, “Fund managers often sell one stock of a sector and purchase another. This is a healthy sign for the markets.”

There is a takeaway for investors from the market guru too. Singhvi said that it is important for investors to ensure that they don’t miss out on this rally. He said that the sentiment is coming from overseas markets which again, is a positive sign. 

“As long as there is liquidity in global markets, there is no need to worry. It will continue to drive the Indian markets as well. As investors, it is important for you to ensure that you do not miss out on this,” he said. 

Singhvi suggested investors to get out of smaller shares and park their money in more reliable options. He added that it is also important to stay invested in quality shares and not get trapped in weaker shares.