The budget of 2021 was billed as one that would spur growth. As such, it created considerable optimism in the markets and the Sensex performed accordingly. In light of the performance of the Sensex, what should investors do? Experts have this advice for people:
The Bombay stock exchange Sensex has reached new heights recently. As on 9th February 2021, the Sensex crossed the 51,700 mark while the Nifty crossed the 15,200 mark. ONGC, Asian Paints and Titan were among the biggest gains.
One of India’s best known and most popular stock market experts, business magnate and asset manager Rakesh Jhujhunwala has seen a further rise in his fortunes post the budget. His portfolio climbed 10 to 40% in the post-budget rally and an 82% rise from the lows of March 2020. The stocks that performed really well are Karur Vysya Bank (37% rise), Aptech (23% rise), Escorts (19% rise). Ion Exchange (India), Firstsource Solutions, Prakash Pipes, Indiabulls Real Estate and GMR Infra have given between 10 and 15% returns.
The MD of Prime Securities, M Jayakumar says that he would not be surprised to see the index moving up to much higher levels in times to come. It is his view that the Indian stock market has three to give great years ahead for it. According to him, we are currently in the early stages of a very long bull run. He recommends manufacturing, IT and pharma stocks as well as infra, power, steel and cement stocks.
According to Daljeet Singh Kohli, Chief Investment Officer at Stockaxis.com, there are few if any sectors that are underperforming. He recommends economy-facing sectors and stocks like L&T, Siemens, Timken and is optimistic about cement stocks such as UltraTech, Dalmia Bharat and Shree Cements as well bank stocks such as HDFC, Axis and ICICI Banks.
The fact that the market has climbed so much and so rapidly can cause some jitters and this is only natural, say the experts. It is currently in uncharted territory; having rallied 4,000 points since the beginning of this month. If one is looking to invest between 5 and 10 lakhs in the near term, it is advisable to follow a staggered investment pattern. According to Harshad Chetanwala, Co-Founder- MyWealthGrowth.com, it is advisable to invest 20 to 25% in equities and then invest the rest in a staggered fashion over the next three to six months. SIPs (systematic investment plans) are a good option right now.
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