Basant Maheshwari advises investors to look at â€˜Atmanirbharâ€™ companies
Indian market climbed all wall of works to trade above crucial resistance levels on Wednesday, but the pain is unlikely to go away anytime soon and investors should look at ‘Atmanirbhar’ companies, Basant Maheshwari, PMS Manager and Founder of Basant Maheshwari Wealth Advisors told in an interview with CNBC-TV18.
“Going forward the market will become localized, narrow, and focused on just a few companies. We have to look at the ‘Atmanirbhar’ companies which are likely to do well inspite of the government, despite the government, in spite of Coronavirus, and despite the Corona,” he said.
He further added that portfolios have taken a huge hit post-COVID-19 outbreak. When Coronavirus hit us, investors moved from financials and took shelter in defensive names such as FMCG as well as pharma stocks. Once Coronavirus is gone, there is a very little rally in the FMCG or pharma space.
Where to invest?
The best of India’s business in infrastructure companies such as L&T (not a recommendation) which can survive any environment, but the suppliers to L&T might not be able to withstand the liquidity pressure.
He further added that India’s GDP will take a hit and turn negative as there are no investments happening which is important to create tomorrow’s GDP. Going forward, we would have to be satisfied with a 2-4 percent rate of growth and not 6-7 percent.
Investors should ideally pick the top two stocks from each sector which have a better chance to survive. “Money is going to shift to the best in class. There is no room now for anybody who is moderately inferior also,” highlights Maheshwari.
The economic setup favours somebody with scale, and muscle or money power. Space for an inefficient guy is reducing for each passing day, especially in a lower GDP environment.
Commenting on the Bajaj twins, Maheshwari is of the view that Bajaj Finance would do well as we saw a correction in the financials. But, stocks like the Bajaj twins are first to recover as and when things start improving.
Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Moneycontrol Ready Reckoner
Now that payment deadlines have been relaxed due to COVID-19, the Moneycontrol Ready Reckoner will help keep your date with insurance premiums, tax-saving investments and EMIs, among others.
Facebook-BCG report suggests these measures for businesses to unlock the changing consumer behaviour in the current pandemic. Read More!