Exclusive: Anil Singhvi speaks to Aditya Birla Sun Life MD A Balasubramanian; know his outlook for 2021

Aditya Birla Sun Life AMC Limited MD and CEO A Balasubramanian on Thursday talked to Zee Business Managing Editor Anil Singhvi and said that the Indian stock markets really ran fast in 2020. As far as market performance in 2021 is concerned, Balasubramanian said that there was a huge build up in optimism in the last six months. However, the market has still not performed to its full potential and efforts of the government and Reserve Bank of India (RBI) will likely pay dividends in 2021. 

The action taken by policy-makers in the form of interest rate, lending rate and bringing stability in currency will bear fruit in 2021, he added. Even stable government and regular action taken by the Ministry of Finance and policymakers will bring the GDP and economy back on the track. “This will be visible once the economy opens up more. Optimism will continue, hope will also continue, government’s and central bank’s mindset would be also supportive to get back on growth path,” said Balasubramanian.

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अगले साल भी बाजार में रिकॉर्डतोड़ तेजी...खास बातचीत में आदित्य बिड़ला सन लाइफ AMC के MD ए बालासुब्रमण्यन ने IT, फार्मा, ऑटो, बैंकिंग और मेटल शेयरों पर जताया भरोसा#ZeeBizNewYear #StockMarket @AnilSinghvi_ @abslmf @MFBALA pic.twitter.com/3c1AwgiE25

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Talking about learnings from 2020 and themes that he would recommend in 2021, Balasubramanian said the important learning from investors and management point of view this year is how much weightage one should give to quarterly figures and how much to long-term vision.  

It is also important to have conviction power so that you do not miss out on high growth companies and fundamentally strong stock due to fluctuations in their price. One should be clear about one's investment strategy and know which stock one is investing in and for how long.  

Another learning is that one should have a strong conviction, so that when market does crash, like it did in March, belief should remain that it will bounce back with the same force. One should not give up to fear, he said. This bounce back also confirms the fact that one should invest when there is fear in the market.  

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Talking about three sectors in 2021 to watch out for, he said IT, Pharma and FMCG should always be in core portfolio, however those stocks that did not perform to their potential due to cyclical nature or lack of local demand are likely to do better. Auto and banking and finance sectors will drive consumer behivour and will do well too, he added.