Shankar Sharma, the market ace, believes that Emerging Markets (EMs) are in the midst of a bull run. “We are seeing just a trickle of funds into EMs. Scepticism ensuring, I think the best is yet to come,” he said. But, guess where he invests most of his money – fixed income! In an interview to ET Now, Shankar Sharma said that the bulk of his savings is still in fixed income. Sharma sees a strong bull market in small and mid-cap stocks, but cautions that large-caps may lag going ahead.
Talking sector specific, Shankar Sharma said that concerns in metal stocks are overdone. “I don’t think metals are bad now,” he said. Sharma is of the view that a potential liquor ban is a major overhang on related stocks. “Liquor will be on the agenda as many states are going to polls,” he added.
According to Shankar Sharma, uncertainty is the biggest risk. On the issue of the upcoming US Presidential polls, Sharma said that the market has already priced in Hillary Clinton’s victory. “Markets not too concerned on the US presidential polls. One can definitely buy the dip on US poll verdict,” he said. Last week, in an interview to CNBC-TV 18 Sharma has said that the US Presidential elections won’t have much impact on the Indian markets. “No, I don’t think our markets will be bothered much. Whoever wins or loses, how does it matter to us?”
Watch: Shankar Sharma At Morningstar Investment Conference
Earlier this month, Sharma revealed his four mantras to make venture capitalist-like gains in the stock markets. Elaborating on his four mantras, Sharma said, “Firstly, I never wavered from buying trash companies at even cheaper prices. Secondly, a stock must be at multi-year low; look at negative momentum in stock. Thirdly, the stock should be loss-making or near loss-making and fourthly, the stock must be at lowest underweight in its own sector.” Sharma had also heaped praise on Indusind Bank and Amazon, saying management changes, cash turnaround helped the companies in a big way.