scorecardresearchIndian market standing out on less sticky inflation, resilient demand: Sunil Singhania

Indian market standing out on less sticky inflation, resilient demand: Sunil Singhania

Updated: 20 Sep 2022, 10:45 AM IST
TL;DR.
Singhania pointed out that we are heading for a little challenging September quarter but the IT is one sector where India and Indian companies are globally competitive and market leaders.
Sensex, Nifty are near their all-time highs. 

Sensex, Nifty are near their all-time highs. 

Despite the prevailing concerns, the Indian market is standing out because Indian inflation appears less sticky and the country has a resilient demand, said Sunil Singhania, Founder, Abakkus Asset Manager LLP, in an interview with ET Now.

"What stands out for India is a few things; one is Indian inflation is less sticky than maybe elsewhere in the world and the reason is to some extent, India is self-sufficient as far as food is concerned," said Singhania.

"A few agencies have cut India’s growth targets but they are still all above 7%. In a world where countries and regions are fighting to ensure that they go into a recession, we in India are talking about whether our growth rate will be 7% or 7.5%," he said.

He said that the market is witnessing over-optimism which is shown by the number of stocks hitting circuits and the number of stocks which are above their technical levels. These are pointing to a sort of short-term pullback.

He said no portfolios can be bullet-proof and there is no concept of safe stocks.

"No portfolios can be bullet-proof and that has been my experience of the last 25-30 years. There is no concept of safe stocks. Different stocks become safe now and then. Three months back, maybe IT was safe. Now it is the worst performing sector and similarly, the worst performing sector which was the banks three, four months back, now seems to be the safest sector," said Singhania.

Singhania is positive on the Indian manufacturing sector. "There will be some sectors which will do very well because of the disruptions which are happening in various countries and, therefore, Indian manufacturing particularly will do well," he said.

Disclaimer: This article is based on an ET Now interview published by economctimes.com. The views and recommendations given in this article are those of the analyst. These do not represent the views of MintGenie.

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First Published: 20 Sep 2022, 10:45 AM IST