The stock markets have been on a falling trajectory. What strategy should the investors adopt to deal with the ongoing situation? Should they remain invested in the stocks they already have or sell these stocks; buy new shares or should they not do anything at all? Zee Business market expert Mehraboon J. Irani has answers to all your queries. Irani is the Managing Director (MD) and Chief Executive Officer (CEO) of and Gini Gems.
Whatever the stock markets have undergone in the last one week has been reminiscent of what happened to the markets in 2008, Mehraboon J. Irani says adding that the risk aversion among the investors is at its peak. In such markets, the bounce can even be up to 20% from the bottom price. Investors have the opportunity to invest and gain in such markets.
बाजार के मौजूदा हालात में निवेश में बने रहें, मुनाफावसूली करें या फिर नए निवेश की करें शुरुआत? देखिए जीनी जेम्स कंसलटेंट के MD & CEO मेहरबून जे ईरानी के साथ अनिल सिंघवी की खास बातचीत…#BazaarKiBaat #Nifty #Sensex @AnilSinghvi_ pic.twitter.com/UwgQPcaHCj
— Zee Business (@ZeeBusiness) March 2, 2020
But the situation is currently such that the investors are very frightened. Coronavirus scare has been playing on the minds of the investors as it has become a worldwide phenomenon now. The companies are also worried about raw material supplies. China is not only a producer market but also the consumer market. The auto sector and chemical sectors are likely to take a hit. All these factors may play in the future and the markets may see some more fall. The markets may see some selling.
Barring 50-100 shares, all the shares are trading below the 2016 levels including some top stocks like Maruti, Aurobindo Pharma, Lupin, Cipla.
The question is should we remain invested in stocks that have been trading at premium value or should we invest in beaten stocks?
Mehraboon J. Irani says that he believes the richly valued stocks which have suffered in the last week may see a good response, going forward. From the risk aversion point, the maybe a good buy, he adds.
He said stocks like Bajaj Finance and HDFC Bank can be safe bets in this time of uncertainties. This is the time of value picking.
Companies that do not have corporate governance issues, debt issues or promoters pledging issues will likely do well.
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Mehraboon J. Irani cautions the investors against any prediction adding that it is still not known if the markets have bottomed out.