Sunil Singhania of Abakkus Investment Managers said that he is getting more constructive on Small and Midcaps and that this is the right time to buy stocks.In an interaction with CNBC-TV18, Singhania said that a lot of parameters are starting to flash “peak fear” and that is evident from the fact that a lot of investors are giving up and throwing away stocks.
“I think investors Wait, wait, and then there are time comes when they really get fearful. And I think that call that time is that, you know, kind of a scenario, you know, sell, what you can sell, at least create some cash. That always happens. I think it’s a reverse in the bull market, where you have 750, 800 stocks touch new highs and everybody wants to everyone wants to buy. I think we are on the reverse right now. We have so many stocks at 52 week lows and everyone wants to sell. So I think it’s a phenomena,” Singhania said.
He went on to add that he would stick his neck out at the current juncture and say that it is the time to buy stocks currently.Indian equities have been facing relentless selling pressure from foreign institutions and the recent geopolitical uncertainties have dragged the Nifty 50 index down by 1,200 points from record high levels of 26,374, that it had hit earlier this month.
“I think investors Wait, wait, and then there are time comes when they really get fearful. And I think that call that time is that, you know, kind of a scenario, you know, sell, what you can sell, at least create some cash. That always happens. I think it’s a reverse in the bull market, where you have 750, 800 stocks touch new highs and everybody wants to everyone wants to buy. I think we are on the reverse right now. We have so many stocks at 52 week lows and everyone wants to sell. So I think it’s a phenomena,” Singhania said.
He went on to add that he would stick his neck out at the current juncture and say that it is the time to buy stocks currently.Indian equities have been facing relentless selling pressure from foreign institutions and the recent geopolitical uncertainties have dragged the Nifty 50 index down by 1,200 points from record high levels of 26,374, that it had hit earlier this month.
This is turning out to be the worst start to the year for the markets, with the fall being more pronounced in the midcaps and smallcaps, where he is starting to turn more constructive on.
Among the sectors that Singhania is betting on, he named financials, pharma and metals, limiting it to an allocation between 8% to 9%.
He advises investors to focus on companies with more visibility of earnings and reasonable valuations.
