“Our favourite sector for 2022 was banking and in particular PSU banks, which have been buoyant from 2021. This year’s performance has been stellar and the momentum indicators appear to indicate that this trend will continue into the foreseeable future”, says Soumitra Sengupta, smallcase Manager and Founder, Lamron Investments in an interview with MintGenie.
Edited excerpts:
When did you start investing or trading in the equity market? What inspired you to enter into equities?
I made my first investment in the stock markets while still in college. Those were the pre SEBI days and new companies used to issue shares at par. It was quite lucrative in those days because the pricing for IPO’s was regulated and market driven.
I am a finance professional and so investing in stocks seemed to be the natural thing to do. I experimented with various methods but eventually settled on momentum as the one that gives the best returns.
Despite the global equities not performing well, India has managed to outperform the other emerging markets. Your views on it?
India is in a sweet spot. It has managed to outperform not only the other emerging markets but the developed markets too. Many parts of the world are undergoing all kinds of uncertainty. There is a war in Ukraine. China is undergoing its own internal problems. India is therefore occupying a key position in the world. This thrust is likely to continue for the rest of this decade. In the perspective of a momentum investor, I would like to say that the momentum is with India.
Your favourite sector of the year and what returns have this sector delivered in 2022?
Our favourite sector for 2022 was banking and in particular PSU banks, which have been buoyant from 2021. This year’s performance has been stellar and the momentum indicators appear to indicate that this trend will continue into the foreseeable future.
What is the sectoral outlook for next year?
As I have said, PSU Banks have done well this year and will likely continue to do well next year. Auto and FMCG are also looking good.
Which stock has outperformed/underperformed in this sector?
In the PSU bank sector, we go with the large banks which have done well this year like SBI, Bank of Baroda and PNB. In autos we like Mahindra & Mahindra and TVS Motor.
Which stock would you recommend/ do you expect will perform well?
I expect PSU banks to continue to do well and since they are a turnaround story this trend should persist for some time. The stock in this sector that I would recommend is Bank of Baroda.
What new year resolution should new and young investors adopt to bring investing discipline in themselves?
The two most important qualities for successful investing are patience and discipline. Value is built over time and the investor has to patiently wait for his investment to realise the value of the investments. The new year’s resolution for new and young investors should be to develop these qualities.
Disclaimer: The views and recommendations given in this article are those of the analyst. These do not represent the views of MintGenie.
