Market Guru in talk with RJ Salil Acharya of Radio City: People can buy ITC; It can emerge as 'Stock of the Year'

Anil Singhvi, Managing Editor, Zee Business, says, people should adopt a strategy of 'Buy on Dips, i.e. people should continue buying on every fall until the market doesn't break any important level. During a candid radio chat with RJ Salil Acharya, Radio City, 91.1 FM, Mumbai, Mr Singhvi said, people, can buy ITC. I think that it can be the 'Stock of the Year' and you can get good returns in ITC from here too.

Starting the radio chat, RJ Salil, said Joe Biden has sworn-in as the President of the United States of America and the news had a positive impact on the markets globally. Even the market was quite buoyant under Donald Trump's rule. What symptoms are visible and what can happen in the stock markets, specifically the Indian market? To which Mr Singhvi said, before the arrival of Joe Biden, there was a fear that if he comes, then the tax cuts that have happened in America would be pulled back, he turns bit soft towards China and he is nit not market-friendly.

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But after his arrival, nothing looks like this. By the way, he has taken over as the President, now but there are indications and Jenet Yellen, the former chairperson of Federal Reserve, who is going to be the finance minister of the US has already said that tax will raise the tax only after we will deal with COVID and economy comes on the track. This is a case that I am ill and am taking medicine but will stop eating them when I will be cured, it is not a situation that I have to eat them throughout life. In the same way, tax cuts have been provided to the American companies or a stimulus package has been introduced, then it is required only till the economy does not return of the track. Once the patient is cured and has started walking then the medicine is not required. This is something that she has told and it has been liked by the market that dose will be provided till it is required and once the need ends, things can go on its way. This is the reason that the markets are strong in America and it is also impacting us.

Continuing the chat, RJ Salil, said do you think that India's relationship with the US may get better from here, although, the former President Donald Trump had a lot of handshakes with our Prime Minister but talked about 'America First'. However, we have heard that President Biden will put a lot of Indian-Americans in his Cabinet. So, do you think that India may have an advantage and China would be pushed back? To this, Mr Singhvi said, politicians are the same all over the world and the public is also the same. So, it is simple, whatever Mr Biden has said will not do it after sitting on the chair. Similarly, we may think or Americans would have felt that we were very close to Mr Trump but we have to work with the person who is sitting on the President's chair in America. So, it is a matter of fact that we will maintain good relations and it is a compulsion for America and they cannot ignore us. China has shown eyes to everyone in 2020. And, a China + 1 policy is running across the world, in which there should be one more country with China, where we can do business with them and production can be done and India is the only substitute for the same. So, I do not think that after the arrival of Mr Biden there will be any major impact on the relationship between America and India.  

What strategy should be adopted for the coming week? To it, Mr Singhvi said, 'Buy on Dips'. People should continue to buy on every fall until and unless the market doesn't break any important level. RJ Salil further asked, keeping the budget in mind, can we make some plans from now itself? Mr Singhvi said, of course, I would like to say that you can book profits in sectors, like IT and the banks, that was suggested earlier, as they are posting good results. Today, I would like to suggest just one stock but it is not associated with IT. It is ITC and I am quite confident about it since Diwali and I have been recommending it. Still, I think that it can be the 'Stock of the Year' and you can get good returns in ITC from here too. Now, as the market is at the lifetime high, so you should focus on safe and strong stocks and ITC is one of them.

Market Guru in talks with RJ Salil Acharya of Radio City is a series of interviews on stocks market.