General Trading Chat

He says - We are in the middle of a SIP revolution



Apr 10, 2017 07:47 PM IST | Source: Moneycontrol.com Time to think big! $100 bn household savings still to enter market: Porinju

Investors should look beyond fancied names & be conservative as FY18 will be another rewarding year for stock pickers, he says.

Porinju Veliyath MD & Portfolio Manager | Equity Intelligence India

There is a lot of value left in thousands of Indian stocks. Identifying and buying them is the key, Porinju Veliyath, MD & Portfolio Manager, at Equity Intelligence India, said in an exclusive interview with Kshitij Anand of Moneycontrol.com. Investors should look beyond fancied names and be conservative as FY18 will be another rewarding year for stock pickers.

Q) The whole market is talking about a correction in the market? If you are a long-term investor is it really important?

A) Trying to predict the market is a futile exercise. We have been in a bull market for last 3 decades and will continue to be in bull market for next 3 decades. Any correction when it happens is an opportunity for smart stock pickers to buy their favorite stocks at discount.

Q) You gave nearly 50% return to your clients in FY17? What is your advice to small investors for the next FY18?

A) Stock picking is the game. There is a lot of value left in thousands of Indian stocks. Identifying and buying them is the key. Look beyond fancied names and be conservative, FY18 will be another rewarding year for stock pickers.

Q) What stock themes are looking attractive to you at current levels?

A) Turnarounds, I have been talking about this for some time now. India has many potential turnaround stories ? both management and business turnarounds. Many managements in the past have been unethical towards minority investors and used to siphon off funds to avoid taxes and create personal assets.

In the changing environment, there is no incentive for this. Many of these managements are changing naturally, others will be forced to change.

Q) GST is a done deal now, what are the other half a dozen macro factors you are positive on in 2017?

A) Reforms are a continuous process, we are lucky to have a responsible, prudent government at Centre focused on improving ease of doing business and plugging the infrastructure deficit. We can look forward to more Land, Labour and direct tax reforms ahead.

Digitisation is going to create a level playing field for honest entrepreneurs. At the same time, we might have a disruptive time ahead with many traditional businesses becoming redundant with technology advancements. Reinventing businesses will only survive.

Q) You expect $100 billion fund-flow into equities from Indian households during next 18 months. It is a big sum. Do you think the approach of retail investors towards equities is slowly changing?

A) We are in the middle of a SIP revolution, Equity is the most attractive asset class and there will be big inflow from retail investors.

USD 100 bn is not a big amount it's just 5% of our GDP, less than a third of the planned spending in infrastructure by the government. We have been accustomed to thinking small, but now is the time to think big and make it large.
 
Last edited:
Few years back there was a block deal in which a well known Indian promoters of a pharma company sold and a Japanese company bought....though a very sound looking reason was given by both, investors knew that the smart promoters ne Japanese company ke gale me mala pahnai hai...and the share price became half soon after that.The promoters were astute businessmen and knew the forthcoming troubles for the company...

Smart_trade
Ranbaxy ... ??
 
wow !!!!!!!!!!
aaj to DJI per tukka bilkul fit laga hai :D
That dip made a low of 20632
and now did an high of 20725

now dekhtein hain
will DJI moves to 20800+ :D
just small amendment
first to touch 20750 and then to move for 20800+
DJI

Didnt move for 21750 on Friday, but today,
High so far 21750.3
 
8-12 % dip in a stock in uptrend ( dip may be due to geo political reasons,some change in Govt policy) I look to buy provided the uptrend is not challenged...so in Bajaj Finance I used to buy below 850-900 ...then that level got raised to below 1000....now it is below or near 1100.....

Same with other stocks like Maruti I am a buyer around 6000.....I used to be a buyer in HDFC bank around 1000, then 1100.... now it has run up more...Yes bank I am buying from below 750....

Smart_trade
Sir, a panic news during uptrend doesn't challenge the trend and is a good opportunity. But when it makes a slow correction what can be a potential buying point ( strong weekly support/ 50 sma? ) for example, maruti gradually came down to 5900 from 6200, wavered around 30ema finally flying to 6300. Biocon is also under slow correction since last week.

Another thing I noticed in a strong uptrend, price just dips around 9ema and then moves up.any comments on this.

Thanks
 
Sir, a panic news during uptrend doesn't challenge the trend and is a good opportunity. But when it makes a slow correction what can be a potential buying point ( strong weekly support/ 50 sma? ) for example, maruti gradually came down to 5900 from 6200, wavered around 30ema finally flying to 6300. Biocon is also under slow correction since last week.

Another thing I noticed in a strong uptrend, price just dips around 9ema and then moves up.any comments on this.

Thanks
Yes,weekly supports are useful....also 8/9 ema gives a good point to buy in a dip in a strong uptrend...most important is we have to think that Maruti having dipped to 5900 from 6200 then is the fundamental story is intact or it has changed...if the future looks good then it is a buying opportunity.

Smart_trade
 
Last edited:

Similar threads

Zerodha – Open Paperless Account

Open online account with Zerodha. Free delivery trading and Max Rs 20 for Intraday, F&O, Currency and Commodity Trading. Intraday High leverage with MIS, CO and BO.

Name:Phone:
Email:City:
State:
Are you a day trader?