Saurabh Mukherjea, Founder of Marcellus Investment Managers, believes the current market scenario is suitable for investing and that this is the best market situation seen for Indian investors in a long time.
"Big companies reporting solid numbers, good macro, good inflows from foreigners coming through – this is the best situation I have seen for Indian investors for a long time," Mukherjea said in an interview with ET Now.
Mukherjea is not concerned about the IT sector. He pointed out that the deal activity is quite solid across the IT services industry.
He said TCS and Infosys are high-quality and honest companies and are tempering down future expectations.
"Once the Fed starts cooling off rates, the whole mark to market around their bond portfolios fades away and we get back to the long-term trajectory that we have seen from TCS, Infosys," Mukherjea told ET Now.
"Migration to the cloud is not even one-third done for the Western world. The big global companies’ issues with IT staff shortages continue and I honestly do not see why people get so worked up about quarter-to-quarter guidance from companies that have proven themselves over 20-30 years," Mukherjea said.
Mukherjea pointed out that these are structural trends with clean and well-run companies. One should stay invested and make money for consistent compounds.
"I own all of these companies through Marcellus, my parents own them through Marcellus and our 10,000 clients own them and we have fairly substantial positions in all the companies that I am discussing," he told ET Now.
Mukherjea has Asian Paints and Pidilite in his portfolio and talking about them competing against each other, he said their head-to-head competition is quite limited.
"These companies are too smart to go head-to-head at any serious level. There is a little bit of ‘do not come into my turf’. ‘If you come to my turf, I will go into your turf’," said Mukherjea.
"At the simplest level, think of Asian Paints as waterproofing for inside your house, inside your bathroom and Pidilite as the waterproofing for the outside, the exterior of the building," he added.
Disclaimer: This article is based on an ET Now interview. The views and recommendations given in this article are those of the expert. These do not represent the views of MintGenie.