“We are fully invested but we are deep value investors. So we are not worried. But am I worried about the overall market? Yes, I am very worried. This is the first time I am worried about the market and yet I am fully invested in the markets as well,” says Siddhartha Bhaiya, MD & Fund Manager, Aequitas Investment Consultancy.
What led to the fall on Friday? Was it only about the Adani Group of stocks and the selling there which acted as a snowball effect?
I do not really think so. That is a separate part of the market and that was moving independently whether markets were going up or down. I would categorise it as a totally different part of the segment. But the broad breadth of the market was also very weak. Dixon was down 20%, again a very popular over-owned name. Year to date, Nifty is up 2%. One year returns, but portfolios are bleeding 15-20-25%.
What led to the fall on Friday? Was it only about the Adani Group of stocks and the selling there which acted as a snowball effect?
I do not really think so. That is a separate part of the market and that was moving independently whether markets were going up or down. I would categorise it as a totally different part of the segment. But the broad breadth of the market was also very weak. Dixon was down 20%, again a very popular over-owned name. Year to date, Nifty is up 2%. One year returns, but portfolios are bleeding 15-20-25%.
Clearly we are not in a bull market. The bear market has been underway for some time and I have said that earlier. It is going to be very selective. The auto index was up on Friday. I think a lot of the previous momentum names will continue to go down and we will have a new rung of leaders coming in. So tough times for the markets.
What are you telling your clients and what are you doing? Are you deploying cash already in the pockets that you talked about like auto ancillaries, industrial, etc? Are staying put and waiting for the big events like the Union Budget and Fed meeting to be out of the way?
We are fully invested and marginally here and there a little bit. It does not affect the returns overall. We are fully invested but we are deep value investors. So we are not worried. But am I worried about the overall market? Yes, I am very worried. This is the first time I am worried about the market and yet I am fully invested in the markets as well.
But where are you deploying the incremental capital?
We are just adding to existing holdings. We are heavily invested in infrastructure, global commodities. We are invested into auto, auto ancillaries and media. Those are the sectors where we keep on increasing our exposure. To be honest with you, no material additions on Friday and in 20 years, I have never had an opportunity or the cash to deploy at the bottom or whenever there is a big correction. I just stay put through major corrections.
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