The period of decline in the stock market continues. Nearly Rs 50 lakh crore of investors have been lost in less than two months. Small investors, who have earned a lot of money in the market in the last 3-4 years, are not able to understand what to do at this time? Among these, a large number are investors who have not seen a major decline till date. To remove this uneasiness of investors, TV9 team has talked to veteran investor Vijay Kedia. Vijay Kedia told what investors should do in the current market.
How dangerous is the market decline?
Vijay Kedia said that the market now seems to be in the recovery phase. There has been a lot of decline in the market in recent times. However, he also said that all the difficulties of the market are not over yet. Kedia said that many shares are 30-40% down from their peak, hence now if the market falls, it may not be possible for these shares to fall in the same proportion. Kedia said that one-sided market is not good for investors. And in such a situation this correction is good. Vijay Kedia said that the current fluctuations may continue for the coming few days.
Which stocks to keep an eye on?
Vijay Kedia said that every stock has its own bull market. There are many such stocks which had made the top in July. Some had made the top in September. In this way these shares will make their bottom. He said that in the mid and small cap space, there is a bull and bear market for individual stocks. Separate analysis will have to be done for the shares which have increased 4-5 times. The bottom of some of these stocks will be made in November, while the bottom of some may be made in January.
FII selling complete?
Kedia said that FII activity slows down in December. He said that the era of FII selling is almost over. However, foreign investors will not make purchases before next year. He also said that at present there is a shortage of buyers in the market and at the same time the earnings also appear weak.
How big is the China factor?
Kedia said that long term investors will not be much affected by China etc. China is a superpower and China will rebound again. Besides, India’s economy also remains strong.
What should retail investors look for?
Kedia said that there is a big opportunity for the people going through the current decline. He said that the market will stabilize in two-three months.
In which sectors and stocks is there opportunity?
Kedia said that he likes sectors like EV sector, telecom equipment. Besides, there is a good opportunity in airlines also. Apart from this, public sector banks are also Kedia’s favourite. He said that stocks like Bank of Maharashtra and private bank Federal Bank look good. However, he said that he is not recommending any stock.
How do retail investors choose shares?
Kedia asked investors to look at company figures and listen to management interviews, this is the way to choose good shares. He gave another advice that instead of looking at the index, invest money by looking at the shares.
(Disclaimer: The advice given in this article is the personal opinion of the expert. If someone makes a trade in the market based on the advice, TV9 will not have any connection with that trade, TV9 will not be responsible for the profit or loss arising from the trade. Consult your financial advisor for investment or trade.
