Sachin Shah Top Tips for Equity: Further movement of the market Sachin Shah, Executive Director & Fund Manager of Emkay Investment Managers Says that consolidation is being seen in the market. The market has given returns of 20-25 percent for the last 3 years. At present the valuations of midcap and smallcap shares are quite expensive. The results of the companies have also been sluggish. Due to which it is natural to book profits in the market. However, the fluctuations in the market are providing a good buying opportunity for long-term investors. In such a situation, there is an opportunity to get good shares in the market at attractive valuations.
This sector will do better
Sachin Shah further said that the valuations of the private bank sector appear quite reasonable. The growth of banks is also expected to be good in the coming 2-3 years. Depository growth of private banking sector also looks quite good. Besides, the asset quality of the sector has also been quite good. Therefore, it would be advisable to invest in big private bank companies.
At the same time, valuations of the IT sector also look quite good. The way the recovery of the US economy is visible. The IT sector will benefit from this.
There are many companies in the pharma sector which have exposure in the CDMO space. China OnePlus is a big tailwind for these companies. Therefore this sector also looks quite good for investment for 3-4 years. Auto companies and auto accessories are also looking better from investment point of view. Invest in leader companies of all these sectors.
Mixed trends in energy sector
Reliance Industries stock is the most heavyweight in Nifty energy sector. After that comes ONGC, BPCL, NTPC. In this basket, each company is giving different business direction. Mixed trends are visible in the energy sector.
Correction in the market is giving better opportunity for investment, money will be made in power companies: Alok Aggarwal
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