Load Up On Stocks If Nifty Hits 9,500, Says Saurabh Mukherjea
Saurabh Mukherjea has plans to “aggressively buy” if the NSE Nifty 50 Index slips to 9,500—be it because of the liquidity challenges or political uncertainties.
“It will start looking interesting if Nifty hits 9,500. At that juncture you don’t need to worry about politics, oil prices etc,” the founder of Marcellus Investment Managers told BloombergQuint.
The Nifty rebounded after the gauge dropped over 10 percent in the past two months, the worst such back-to-back decline since February as Brent crude rose to its highest level in four years adding pressure to nation’s balancesheet. Also, a series of repayment defaults by IL&FS sparked a concerns of debt crisis, triggering a cash crunch.
“I bought a bit of small-caps a couple of weeks ago when the markets had conked off. I have restrained myself because people are getting excited again,” Mukherjea said.
On Tech Stocks:
- Tech stocks to have a competitive advantage as rupee will continue to be weak for the next three-four quarters.
- Sector will benefit both in terms of results and volume growth.
- Constant currency growth of around 10 percent and 15 percent growth in EPS (earnings per share) are the parameters to weigh a mid-cap IT stock as it’s a highly cash-generative sector.
- Strong U.S. economy and weaker rupee point in the right direction to invest in well-run mid-cap IT stocks like L&T Infotech.
Real Estate Sector:
- Combination of goods and services tax and RERA Act will lead to consolidation in the sector.
- Wait for three-six months before investing as their funding pipeline from housing-finance companies has begun to dry up.
- Price variable in the residential real-estate sector will head south in the next six months.
Oil Marketing Companies:
- Government deserves credit for letting the oil prices float for the last three months.
- Oil-marketing companies are a “big buy” if the current government retains incumbency.