The continuing decline in the stock market for the last 5 months has scared the investors. Investors are thinking about investing in defensive stocks. However, HDFC Securities, the latest thinking of the divine lawyer is different. He believes that it is time to hide in defensive shares like IT and Pharma but to be aggressive. In a conversation with Moneycontrol, he told many important things about the stock market and investment. He said that the market is close to its bottom. Taking a little risk right now means that there may be a big earning.
Changes in the attitude of HDFC Securities
The lawyer said that the market is expected to reach its bottom soon in this correction. After this sectoral rotation can appear. He said that HDFC Securities will recommend investing in risk investments such as cement and chemical stocks in the next 6 to 12 weeks. Investors will also be able to invest in commodity-focused segments. Earlier, HDFC Securities had advised investors to increase investment in defensive sectors like IT and Pharma.
Market hopes to make bottom soon
He said that now investors should give 30-40 percent of their portfolio to banking, financial services and BFSI companies. The reason for this is that the valuation of these shares is correct. He said that the market is expected to make its bottom in the next few weeks amidst geopolitical uncertainties. The market move will change as the bottom is formed. India is going to be a big hub of manufacturing. The government is promoting manufacturing in the country through schemes like PLI.
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FII disappointment due to earnings growth
Regarding the selling of foreign funds, the lawyer said that FII comes for India growth and not for value. In the last few weeks, the earnings of companies have not been the same as the FFI expected. On the other hand, due to the government’s package in China and AI innovation of Dipsek, the valuation of the stocks of Chinese companies became attractive. FIIs are also withdrawing their money from the Indian market due to weakness in rupee. The lawyer said that the earnings growth of Indian companies will soon be strong.