Market Guru in talk with RJ Salil Acharya of Radio City: Investors can buy good Paper Stocks

Anil Singhvi, Managing Editor, Zee Business, says, fear of Corona is good for the markets. During a candid radio podcast chat with RJ Salil Acharya, Radio City, 91.1 FM, Mumbai, Mr Singhvi said people can invest in good paper stocks as they will do wonders in the next two to three years, all are going to double. 

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RJ Salil at the start of the podcast ‘Kadak Currency’ said, the Sensex has jumped Mount Everest. The Nifty has crossed the 16,000 level and Sensex is running between 54,000-55,000. I still remember when people said that there could be a break or there can be a downfall and a correction will happen. You were the only person who said strong results are coming and it is being heard that India will be re-rated, and it will be for good things. So, what do you think where we can go from these levels and what should be our strategy now? To which Mr Singhvi replied, there is an atmosphere of bullishness and in this atmosphere, my targets are quite high and if I will talk about then you will say you have huge targets. My targets are first 17,000, then 19,000 and 21,000 for Nifty. It is obvious that if they are not going to come today or tomorrow and will take their time. Even the market will not run one-sided and in between certain corrections will be there of which some will be small, and others will be big. But overall, the entire global market and our markets are in a long bull trend. 

We have done good research and observation due to which the markets have crossed the 16,000 on Nifty and 54,000 on Sensex and the reason is that again the risk of CORONA and delta variant is increasing in America and some other countries. As long as there is a fear of CORNA in the markets in other countries and ours, the markets will not get worse. You must be thinking that what an opposite thing is this at least when there is a fear of CORONA then the situation of the markets and the economy should be bad. But things are opposite because as long as there is a fear of CORONA three things will happen:

(i) The Fed will not increase the interest rates in America. 

(ii) The stimulus package in form of a relief package that was started will continue and will not stop. 

(iii) The money that has been put in the system and the liquidity that has been there in the American markets from the Fed’s side is not going to come out. 

So, what equity markets need to boom? It needs money, good sentiments and low-interest rates and all these three things are available. So, as long as there is a fear of CORONA, the market will not get spoiled, this is sure and let’s believe in it. Yes, meanwhile, if there is a big number in terms of huge numbers of patients surfaces then a correction may come and there can be a slight decline, but the markets will climb back in a day or two and accelerate. So, the fear of CORONA is good for the markets. 

Continuing the podcast further, RJ Salil, asked about a stock where people can invest as the result season is on. Replying to the question, Mr Singhvi said, this time, I want to watch the result season closely despite that paper stocks are looking very strong now, it is not just a paper, it is a note, just understand it. The results in the paper shares will be strong and gradually they will behave bullishly. You would remember that earlier I talked about the sugar sector and the buzz in it, which is existing to date. We have also talked about the textile shares and still, there is a buzz. After sugar and textile, paper is another small sector, which I am liking. In the last five to six years, no paper company has increased its capacity, but demand is increasing. You think yourself that tissue paper used to be a luxury five years ago, today it is a necessity. The way the demand for paper is increasing, going forward, these stocks will in two to three years do wonders, all are going to double. So, invest money in good paper stocks.