In this program of our Mantra Series of Prosperity from Diwali to Diwali, we are talking to Market Guru Basant Maheshwari. From them today we will try to know that where is the key to earning big on this Diwali and from this Diwali to next Diwali where will the money be made. But before going ahead with this conversation, let us see how the market has been doing since last Diwali till now. From last Diwali till October 12, the Nifty has seen a decline of 5 percent. On the other hand, Nifty Bank is down 2 per cent.
Similarly, if we look at the gainers of Nifty, so far Adani Ent has given 113 percent, ITC 45 percent, Coal India 44 percent, M&M 43 percent and Eicher 27 percent. On the other hand, if we look at the midcap gainers, HAL has given a return of 78 percent, IND Hotel 60 percent, BEL 52 percent, TVS Mot 51 percent and Escorts 30 percent so far.
Similarly, if we look at the top losers of Nifty, Wipro has so far given a negative return of 38 percent, Tech Mahindra 33 percent, Divish Labs 32 percent, Tata Steel 24 percent, HDFC 21 percent and Tata Motors 20 percent. . On the other hand, if we look at the midcap losers, Motherson Sumi has given 53 percent, Godrej Prop 52 percent, Manapuram 51 percent, FSL 49 percent and Metropolis has given a negative return of 49 percent.
Talking on the future outlook of the market, Basant Maheshwari said that the market has not been the same. Due to the news, there has been a sharp volatility in the market now. Talking on the movement of crude, he further said that the Indian market is getting support due to the fall of crude. Crude $130 is now seen near $90. If crude falls in the range of $ 65 to $ 75, then do not worry. This is good for the market. At present, domestic liquidity has also taken over the market. He further said that GDP has been supported by good consumption trends. GDP growth can never go below 4 per cent. Perfect setup is needed for 8% GDP growth.
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In this conversation, Basant Maheshwari further said that making wealth is more difficult than before. The volatility in the stock is higher now than in the past. In the short term, the market is like a driverless car. At present, wealth creation cannot take place in the market without taking risk. To make wealth you have to take risk. It is difficult to become rich without risk and tension.
He further said that it is not easy to take risk in a volatile market. If you took a good share 20 years ago, money would have been made, but now it is not possible to take a position in the same stock as before. Nowadays, there is a sharp volatility in the stock because information is now available in the market faster than before, due to which the competition has also increased.
Where and in which sectors money can be made
Explaining the principle of making money in the market, he said that it is difficult to make money in this market in the short term. At present, wealth creation in the long term is possible only by investing big money in the market. He said in his conversation that new tech companies are expected to make more money. Returns of up to 20-40 times are possible in Nasdaq companies while high returns are not possible in indigenous tech companies. At the same time, good money can also be made in pharma from the point of view of investment.
He further added that the fashion retailing space in India remains lucrative. In the correction, the fashion retailing space looks better to invest in. So money can be made in the consumer space. At the same time, money can also be made in the consumer and banking sectors in the long term. Because investing big money instead of big returns is a better idea.
Where should investors invest? To this question, he said that large investments in growth companies will lead to wealth creation. Money is made only after taking calculated risk.
Talking on the auto sector, Basant Maheshwari said that for investing in auto, it is necessary to have a vision of 5-10 years. EV’s dominance in the premium segment will increase. While giving his opinion on the cement sector, he said that the bad phase of the cement sector is over. In December, the results of cement companies were good. Because of the status symbol, cheap things sell less.
Basant Maheshwari further said that he likes a company with pricing power and commodity inputs. He says returns are possible in companies with commodity inputs. Commodity prices fell, but product prices remained stable. Talking on the midcap space, he said that midcap IT has risks but better returns are also possible. Midcap IT will benefit from strength of dollar.
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