Mumbai/Pune: In a recent interview with Sorbh Gupta, Senior Fund Manager – Equities at Bajaj Finserv AMC, he emphasized that equity markets do not follow a constant upward trajectory. “Volatility is inherent,” Gupta remarked. “Markets undergo corrections which should be viewed as opportunities for investment.” Acknowledging the current scenario, he cautioned that market volatility might persist, yet Gupta advocated that retail investors should capitalize on this phase to make prudent investments. He suggested diversifying into Multi Asset Allocation Funds and exploring other asset classes as a strategy to mitigate risks associated with volatility.
Reflecting on recent governmental policies, Gupta noted a predominant emphasis on the supply side over the past decade, distinguishing India from other economies during the COVID-19 pandemic. However, he expects that upcoming electoral pressures and coalition dynamics could lead to potential shifts towards demand-side policies or populist measures.
Discussing sectoral prospects, Gupta advised investors to prioritize long-term growth sectors over short-term market fluctuations. “The government’s focus on rural and consumption sectors is likely to drive growth,” he observed. He highlighted potential beneficiaries such as FMCG, Two-Wheeler, Tractor, and rural-centric businesses in Retail & Finance, predicting possible earnings upgrades in these areas. On the IT sector, Gupta noted its resilience to domestic political changes but cautioned about impending volatility surrounding the upcoming US elections.
Gupta further analyzed the impact of initiatives like ‘Make in India’ on sectors receiving regulatory support, which bolstered their performance. He suggested that future budget allocations could pivot towards consumption, potentially affecting valuations in Public Sector Undertakings (PSUs) as economic priorities evolve.
Offering advice to investors, Gupta stressed the importance of maintaining composure amid market fluctuations. “Avoid hasty decisions,” he advised, advocating for a diversified asset allocation aligned with individual risk tolerance and financial goals.
Looking towards foreign investor sentiment, Gupta remained optimistic about India’s long-term growth prospects driven by robust economic fundamentals. “Despite short-term fluctuations, India remains an attractive destination,” he affirmed, predicting renewed Foreign Institutional Investor (FII) interest driven by the fear of missing out (FOMO) on India’s growth story.
Concluding with investment strategy, Gupta recommended a well-diversified equity portfolio anchored in megatrends and quality companies. He endorsed systematic investment plans (SIPs) with a long-term horizon as a prudent approach to wealth accumulation amidst market uncertainties.
In essence, Sorbh Gupta’s insights underscored the importance of strategic foresight and disciplined investing in navigating the complexities of today’s financial landscape, offering a beacon of guidance for both seasoned investors and newcomers alike.
