Market Guru in talk with RJ Salil Acharya of Radio City: Invest in exchanges, BSE & MCX; they can be a good investment

Anil Singhvi, Managing Editor, Zee Business, says the GST rates on few auto components are likely to be brought down in recent future, which will be a boost for auto companies in terms of tax. During a candid radio chat with RJ Salil Acharya, Radio City, 91.1 FM, Mumbai, Mr Singhvi said people buy exchanges, BSE and MCX after a small correction takes place there.

During the radio chat, RJ Salil talked about few things that are important in present times, like a car manufacturer’s statement that they are facing difficulties in manufacturing here because no relaxation is being provided on the taxation front and people are not being attracted to buy the vehicles. He added, the manufacturing sector is so big, as far as the car is concerned, and asked Mr Singhvi what the government can do to prop-up the sector. Mr Singhvi in his reply said as far as two-wheelers are concerned then there is demand in the segment because people prefer to use their vehicles instead of the public transportation facility, at least for a period till which CORONA is there.

He added when it comes to cars than slight improvement has been seen in the segment. It is fine for India but if we want to be an international hub, where cars are manufactured as well as exported from India then I think something more should be done for the industry. I am sure that the government will do so in the next few days. There is a talk related to a reduction of GST on certain components that are used in cars and other auto segments. So the reduction of the GST can act as a big boost for these companies in terms of tax. Demand is getting back and people are slowly moving out to buy. Two-wheelers are being bought fiercely. So the matter is fine here in front of demand and any further incentive can encourage exporting them. 

To this, RJ Salil said, a lot of questions were being asked in terms of GST, which has had an interesting impact on our stock market due to which the markets remained almost flat for two-three days but a lot of actions were seen in the last half-an-hour in the last two-three days. What does it tells to us that internal trading is happening in India or international traders are coming to India? To which, Mr Singhvi replied by saying that Indian and the American market are very volatile.

So what happens, when we open in the morning then it is decided how the market is going to be today. This a big action is seen in the first half-an-hour and the evening when it is ready to close around 3:00-3:30 pm, then a sense prevails about what can happen in America and what kind of news can break in late-night, good or bad. Looking at it, the traders try to reduce their position in the market. So big trade actions are seen in these two half-an-hour slots and rest hours resembles Hrithik Roshan’s song, ‘Idhar Chala Main Udhar Chala, Jane Kahan Main Kidhar Chala… Arre Phisal Gaya’… and the same continue throughout the day, it keeps moving up and down and manage to balance itself.

So, it is a range-bound market and is in search of a direction. However, the global market is strong. Some tension is there due to the ongoing tension on the border with China and we are cautious a bit. The mood is slightly positive, bit negative but cautious, due to which the market has been range bound and is moving up and down. 

In his next question to Mr Singhvi, RJ Salil asked about the hidden gems, may it be the bank or auto ancillary or auto companies or something else, where an investor can think about investing this week. To which, Mr Singhvi said to think big, why should be engaged in buying one or two stocks, I would like to give a big idea today, buy the exchange itself, buy the entire share market. That is today I am going to tell you the names of two shares and they are BSE (Bombay Stock Exchange) and MCX (Multi Commodity Exchange), both are exchanges and are listed in the market. There are possibilities in which both of them will turn bullish in the next few days. 

Going forward, NSE’s will also bring an IPO and whenever their public issue is out then the valuations of the listed exchanges, BSE and MCX, will also increase. Although, the BSE has moved up slightly when there is a correction in it and it is available in the range of Rs 500-525 then invest in it, as it can be a very investment. Similarly, buy MCX when it comes down by 5-10% from current levels. So, I would like to say today that buy the exchanges instead of thinking about the shares.