INSUBCONTINENT EXCLUSIVE:
NEW DELHI: The domestic equity had a heady fall on Friday as shares of select frontline banks and
housing finance companies suffered
heavy losses.
The trade on Friday was so volatile that BSE benchmark Sensex tanked and later recovered by over 800 points within a matter of
minutes.
Market experts blamed higher crude oil prices, weakness in the rupee and bearish global cues for the market blues.
For immediate
triggers, they blamed financial crises at ILFS and sharp slide in YES Bank’s shares after the lender’s MD and CEO Rana Kapoor was denied
extension by the Reserve Bank of India.
Here’s what market experts are advising as the stock benchmarks fell over 2,000 points in
September alone:
Madhu Kela, Market VeteranThis looks like a technical selloff
A few NBFC companies have clarified that their short-term liquidity situation is very good and when I say short term, they said that for the
next one year they have enough liquidity in the liquid accounts to match the liabilities.
This looks like speculative unwinding and for a
long-term investor, if you really understand the company and if you have faith in the management, these are brilliant opportunities to buy
Wherever the management is solid, they will be able to weather this storm and come out stronger.
Markets are more than discounting that and
again remember this currency when in 2014 rupee was at 70
In 2017 it became 63 and from 63 it has gone to 72
So when you look at from 63, it looks like 12% depreciation but if I look at from 2014 level, we are up 3%, 4%
Basant Maheshwari, Co-founder Partner, Basant Maheshwari Wealth AdvisersThe first thing about markets are prices, the second is earnings
So obviously when prices fall 50-55%, the first thing that we want to look for is if there is any big issue and if the issue is not that in
print, then normally it is a knee-jerk reaction.
If you have good companies, you cannot be a prisoner of prices
In the NBFC business it is always said that you have to stay with the best
If you have been buying good quality names, they have come down and you can buy more
But people like us are already invested
There is nothing more to put in
But then, it is all fine.
Once you have the October results, the good ones are going to recover and it is as simple as that
Meanwhile, the price on the screen scares you and it scares me.
