Market surveillance | Jigar Mistry, co-founder, Buoyant Capita on:
Over the past week, the small cap index has corrected by around 8% and the Sensex has fallen by around 1-2%. If you look at the names of the BSE 500, some 30 odd-numbered stocks have fallen 15% or more in the past week or so, but have fallen only 2% in the past month. “So the excesses build up and end up getting eliminated very quickly as well,” said Jigar Mistry, co-founder of Buoyant Capita.
“IRCTC we owned it, we first bought it when it was Rs 1600 and we continued to own some parts of the amount because the run had been too fast for us to justify the maintenance of the property under this name. So we sold the majority of that position, a few tiny positions to hold onto, but again, this is not an overnight flight business that will generate something like Rs 1,000 crore in fact a year later, ”he said. he added.
And there are options as to how you know the payment gateway for it will be supported in addition to the other benefits, as the PNR would start to be built now as individual passengers, water prices would go up. essentially. So this is a decent stock to own, just when the valuation gets too high, we cannot continue to hold them. So we have a tiny amount of it, Mistry said.
At current levels of Rs 4,250, are valuations fair, is it justified to continue to hold?
Yes. The current price is not that excessive. Over the past two or three days, it was among the most traded stocks, which means a lot of people may have worried and sold the name. So gradually, once the fundamentals of the business are acquired, it could be an interesting bet, he said.
Bank, insurance, metals
“The sectors that we like are banking, insurance, metals, chemicals, very selective IT and some reopening. Banking, we have argued in the past that Sensex and Nifty – larger markets moved to a higher level, people continued to worry about the banking system and once ICICI came out with the reserves, some of that was gone, ”Mistry said.
So, in the future, he believes that any banks that can report reasonably decent growth and control slippages and asset quality will be reassessed.
The ones he continues to like are ICICI Bank, which has been his main stake, but also SBI, Federal Bank and Canara Bank.
“In insurance, we have like Max Financial, although this sector has corrected itself and SBI Life Insurance also makes a lot of sense. But we own Max Financial, ”he added.
“In tech, I think, you know, with the numbers that came out, we’re pretty sure there’s no problem with the demand, but the margins are something to take care of, and when they are negotiating all that high time you have to beware. So the ones we have are Eclerx Services and Cyient, ”he said.
Since the space reopened, Mistry loves Welspun, India Pokarna, and SIS.
In chemicals, basic chemicals have been upgraded. He thinks we have to take a step back, understand how incremental businesses are run. So, the ones he loves and owns are Gujarat Flourochem and Sudarshan Chemicals.