Market Guru in talk with RJ Salil Acharya of Radio City: People should focus on Opening Up & Export Centric themes

Anil Singhvi, Managing Editor, Zee Business, says, the unprecedented rise in the market in the last few days is a result of the decline in CORONA cases and global markets, which is getting stronger. During a candid radio chat with RJ Salil Acharya, Radio City, 91.1 FM, Mumbai, Mr Singhvi said people can focus on two themes, namely opening up and export centric stocks. 

Starting the radio chat, RJ Salil said, while last week the market was quite volatile and was swinging up and down but in the last few days, it seems that there has been a lottery which has excited people a lot. Especially there is a huge change in the banks and the market has taken a leap jump instead of small jumps. Is it so that the market is factoring in the vaccines that are coming and the discussions related to it? To which Mr Singhvi said, two things have occurred due to which the markets are going strong and the first is that the market has a feel that the CORONA cases have picked out, that is, the worst phase of CORONA, where more than four lakh cases of CORONA was diagnosed will not be seen once again. In fact, less than three lakh cases have been reported for the last 3-4 day and this is filling confidence in the market. Secondly, the global markets seem to be getting stronger. These two factors are increasing the confidence and as vaccine supply increases and the CORONA cases go down, the market is likely to strengthen and grow. At the same time, the quarterly results of the companies are quite powerful. Together, these three factors are have energized the NIFTY to rise above the 15,000-mark. 

See Zee Business Live TV Streaming Below:

In his next question, RJ Salil said, people through the prices of gold will go up but it appeared to fall a bit. So what would be your opinion on gold in the next 3-6 months? Mr Singhvi said, I would suggest buying it. You would remember that I have continuously asked to buy it from around 45,000 levels. And, the opening up of the economy will happen and people will get shocked from the front of Cryptocurrency – in the last one month it has corrected a lot and it has fallen by around 40%, it falls and picks up at the same pace. So, the weakness of Bitcoin and Crypto Currency will further increase the investment in Gold. Anyway, the danger of a rise in inflation worldwide will also strengthen the gold. So, I think, it is a perfect time to buy gold. And, those, who have purchased silver, will feel the happiness. 

Continuing the chat further, RJ Salil said, last week you suggested names of some commodity and FMCG stocks and said they will remain strong. Banking stocks are slightly up. What will be your suggestion for the next two months or people can chose the banking stocks at this moment? To which Mr Singhvi said, I would like to give a new theme for the next couple of months and it is related to opening up. As the corona cases will be reduced and as the economy will open up and people will start coming out of the house again, then there are few sectors which will be benefitted the most, I will put the hotel sector on top of them. Focus on hotel stocks and buy those shares.

The second sector is related to dining and it is a restaurant and you will see action coming here. The third sector is stocks associated with travel, it can be a ticketing company, hotels and businesses that are directly or indirectly associated with holidays. I think this theme will do a tremendous job. You should focus on this theme. In addition, the other theme is export centric. The companies that exports to America and Europe and the consumer demand is quite strong there and people are cueing to buy products, which is not available.

In such a situation, these companies are going to report a huge surge in their profitability as they have huge orders with them. Hopefully, if CORONA comes into control by May-end, then the production of our companies will come back on track and these companies will be benefitted a lot. So, focus on two themes, namely opening up and export centric.