Market Guru in talk with RJ Salil Acharya of Radio City: People can invest in NBFCs like PNB Housing Finance

Anil Singhvi, Managing Editor, Zee Business, says, there are times when there are few stocks that are at lifetime lows when the market is at the lifetime highs and vice versa. This is a time to focus on quality stocks and a good time to replace the bad stocks in your portfolio with the good ones. During a candid radio chat with RJ Salil Acharya, Radio City, 91.1 FM, Mumbai, Mr Singhvi said a big action can be seen in a few small NBFCs, whose management can be changed like PNB Housing Finance whose stocks has more than doubled itself since the news was out. So, people can invest in such companies. 

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Starting the radio chat, RJ Salil said, now we can say that the stock markets are reaching the skies. Before I go into the RBI meet, where it kept the credit rate unchanged but many stocks like Reliance Power, Adani Power among others are quite bullish. However, many times people run a lot to catch the tail and it is being discussed a lot. So, are you seeing that is greed there are chances to sleep in few stocks like this?

To this, Mr Singhvi said, see, when the markets are at the lifetime high, then also you can get some stocks that are at the lifetime lows. Similarly, when the markets are at lifetime lows then few stocks will perform bullishly. That is, you are always at risk and danger. So, at the time, when we are at the lifetime high, it is very important to focus on one thing that is quality. That is, you must not buy garbage but it is a time to take out the garbage and buy good stocks. So, good and powerful stocks are present and you should buy those. It is so that sectorial churning is going on and it is said that everyone will get a chance. So, the ones who have performed are resting a bit and those who are back in this race are trying to catch up. So, one by one sector, where people feel that there is no upswing, the valuations are good, in such situation power stocks, capital goods stocks, that is, the CapEx cycle of the economy will come back again and the stocks related to it are getting ready to perform well. 

Continuing the radio chat, RJ Salil said, the RBI has kept the rates unchanged in the consecutive eight meets. In such a situation, inflation becomes a question in which people feel that when there is inflation and the value of Rs 100 has come down so much and is combined with the increased prices of petrol and diesel. So, please explain to the general public the meaning of keeping the rates unchanged? Mr Singhvi in his reply said, if you are an investor of the stocks market, then you will always like that the interest rates remain down and continue to go down because the earnings of the companies increase when the interest rates are low. And, in such a situation, people will invest less money in fixed income and invest more in a risky asset class like equity, which is good for the market.

But if you are not investing your money in the market and goes for a fixed deposit something else in the banks then you will earn less interest, it is a loss for you. So, when the interest rates are decreasing, you should invest some money in the equity and when the interest rates are increasing, you can invest some money in the fixed income by withdrawing it from the equity. As far as the policy is concerned, the RBI Governor has reduced the growth forecast for the financial year 2021-22 (FY22) has reduced the GDP growth by 1%, with which it has come down from 10.50% to 9.50% and kept the inflation forecast around 5%, which is comfortable. The best part is that there is no expectation of any change in the interest rates in the next 6-8 months. This is you need a stable policy in which there are fewer ups and downs and there is a clear signal from the RBI for us in that direction. It is good for the market as well as the investors. 

After this, RJ Salil, said, the man with the magic box to whom many people have been listening to and informed that a big surprise is awaited on Radio City in which Managing Editor of Zee Business, Anil Singhvi and he (RJ Salil) are going to do something. Talking about the same, RJ Salil asked about the specific stocks where one can invest. Mr Singhvi said, it is a surprise for me too as we are going to do something big together and I came to know about it right now and said yes we will definitely make it happen. As far as stocks are concerned, I have been telling about the textile stocks since last month and yet I am quite bullish that there will be a good movement in the textile stocks. Similarly, sugar stocks will also move up from here. So, here is a good story take it and sit with those. Also, buy some good stocks of the power sector. At the same time, I would like to talk about a fresh entry, a new sector, today and it is NBFC (Non-banking financial services), which are termed as finance companies. So, there are some small finance companies, which are in trouble, whose management can be changed, a big action can come in those companies, for example, PNB Housing Finance, where promoters have been changed. And as soon as the news was out, the stocks have increased by more than doubled. So, such actions can happen in many financial companies and it is time to put money in those.