As most sectoral indices ended in the red last week, the Nifty FMCG gauge shot up 2.9 per cent with investors choosing to rely more on defensives after benchmarks fell for five straight days before roaring back on Friday. The IPO mart kept buzzing as five new issues opened for subscription during the week. Most of these issues will list this week.
In today’s edition of Tweet Buster, we bring you the best of investing gems, stock market outlook and words of wisdom from market mavens.
Nikhil Kamath, co-founder, Zerodha and True Beacon, took a dig at the craze behind non-fungible tokens. “Just because something is scarce or has a finite no doesn’t make it valuable. My dog will only crap a certain no of times over his lifetime. To everyone selling coins, NFTs, and all kinda exotic nonsense.”
Just because something is scarce or has a finite no doesn’t make it valuable.My dog will only crap a certain no o… https://t.co/lGpQTguzVm
— Nikhil Kamath (@nikhilkamathcio) 1616131342000
Shankar Sharma of First Global said the day when the list of top gainers includes stocks like REC, HUL and ITC , consider it as a harbinger of bad news.
Agar kisi din list of top gainers mien REC, Lever, ITC, ityadi, aa jayen, to samjho bazaar ka patta pack
— Shankar Sharma (@1shankarsharma) 1615884284000
Easy money, really?
Maverick value investor Vijay Kedia summed up his years of experience on Dalal Street in just one line: Stock market is a place to make the easiest money the hardest way.
Stock market is a place to make easiest money in the hardest way. https://t.co/mSjY8uLG2G
— Vijay Kedia (@VijayKedia1) 1616166490000
Forget the daily market
Radhika Gupta, MD and CEO, Edelweiss Asset Management Limited, said: “If you had to do a 5 year FD, you would check rates before investing. But after investing, would you go to the bank, and keeping check what current rates are? Then why should the daily movement in yields, RBI actions, and macros bother 5 year debt investors?
If you had to do a 5 year FD, you would check rates before investing. But after investing, would you go to the ban… https://t.co/zEWcUqiRiP
— Radhika Gupta (@iRadhikaGupta) 1616130727000
PMS fund manager Basant Maheshwari has an honest admission to make about his experience as a mutual fund distributor several years ago. “I realised that MFs & SIPs only make the AMC & distributors rich. For investors, it just beats FD. If you want to be really rich buy stocks – buy a few & don’t make a zoo out of it. Few is good enough. I speak from experience.”
Back in the mid 2000’s as a MF distributor(ARN 28170) I realised that MFs & SIPs only make the AMC & distributors r… https://t.co/NA70GT6wuz
— Basant Maheshwari (@BMTheEquityDesk) 1615719958000
Ravi Dharamshi of ValueQuest Investment Advisors opined that none of the recent IPOs are worthy of being a portfolio company. “Of course, the crazy valuations that they are demanding makes it an easy avoid.”
I do not find any of the recent IPO lined up worthy of being a portfolio company. Of course the crazy valuations th… https://t.co/utEwnqcDpT
— Ravi Dharamshi (@ravidharamshi77) 1615975610000
Triggers for a bear attack
Dharamshi listed five reasons for last week’s correction on Dalal Street:
- Bunched up IPOs in the last fortnight of FY
- Global markets have been muted for the last few days
- For the time being, all positives have panned out
- The first round of inflation scare and yield jump needs to be factored
- Gains need to be digested
Reasons for correction. 1. Bunched up IPOs in the last fortnight of the FY. 2. Global mkts have been muted since fe… https://t.co/TkCeNVRCdv
— Ravi Dharamshi (@ravidharamshi77) 1615974313000
Strike when the iron is hot
He advised investors to keep the powder dry and wait for the opportunity coming up in next few months. “Some people stay invested through the correction, that is a smart call as well. Important to have the right stocks (narratives backed by numbers) with long term perspective,” Dharamshi said.
Time to keep the powder dry and wait for the opportunity coming up in next few months. Some people stay invested th… https://t.co/X9qN20F4cc
— Ravi Dharamshi (@ravidharamshi77) 1615973087000
Trying to be cheeky with the market in a correction can make you lose your position in a good long term story. And… https://t.co/fKLK43OAfK
— Ravi Dharamshi (@ravidharamshi77) 1615973289000
Some of the valuations need to correct at the least 30%-40% before they become attractive again. #markets
— Ravi Dharamshi (@ravidharamshi77) 1615971250000
For IPO investors
iThought co-founder Shyam Sekhar was also critical about the recent IPO frenzy. “March IPOs will most probably end in mayhem.”
IPO has becomeA Lottery + An ATM + A Toll booth.Lottery for retail investors.ATM for promoters/PEs.Toll booth f… https://t.co/R7VAz0yo93
— Shyam Sekhar (@shyamsek) 1616236038000
March #IPO s will most probably end in mayhem.
— Shyam Sekhar (@shyamsek) 1616036395000
Bull markets are born on stimulus, grow on global flows, mature on consensus and die on zero brokerage. https://t.co/YQebpAJYin
— Shyam Sekhar (@shyamsek) 1616171799000
All eyes on yields
Independent market expert Sandip Sabharwal said that when the US 10-year yields reach 2 per cent, all brokerages will start shouting ‘sell’. “That will be the time to buy.”
Once US 10 Yr yields reach 2% all brokerages will start shouting SELL…That will be the time to BUY…
— sandip sabharwal (@sandipsabharwal) 1616077130000
US Fed seems to be losing credibility as bonds continue to selloff. US 10 Yr bond yields at 1.72%Spiraling prices… https://t.co/jKz3kYzow2
— sandip sabharwal (@sandipsabharwal) 1616056108000
The best of stocks come down decently in aggressive corrections. Focus on themThe junk that went up in momentum mi… https://t.co/qOvTX24PWM
— sandip sabharwal (@sandipsabharwal) 1615974102000
The ups and downs
Microcap investor Ian Cassel has a piece of timeless wisdom: “When the market goes higher it makes you want to buy. When the market goes lower it makes you want to sell. The market never screams at you to do the right thing, only the wrong thing.”
When the market goes higher it makes you want to buy. When the market goes lower it makes you want to sell. The… https://t.co/XYZpVmeKs5
— Ian Cassel (@iancassel) 1616094436000
There will probably be a few hundred stocks that will be up 100%+ over the next few years. You just need to find a few of them.
— Ian Cassel (@iancassel) 1615748366000