Stating that there are a lot of disruptions in the tech landscape, Shankar Sharma of First Global told ET Now that tech companies may see slower growth rates going ahead. Tech sector has been central to India’s consumption boom, he added. When asked about stocks, he said, “large cap stocks may lag going ahead. Concerns over metal stocks were overdone. I am bullish on metal stocks”. He also said that as many states are poll-bound, liquor is always on the agenda. Last week, in an interview to CNBC TV 18 he 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?”
He also said that he was not worried about 2-4% market correction after a big run, and also felt that bear market for emerging markets had ended. He was of the view that the market will go through the roof if yields come down to 5%. Stating that there is no correlation between policy rates and inflation in India, Sharma expects the new RBI governor to be hawkish.
Speaking at the Morningstar conference in Mumbai, last week, Sharma said that there are 4 easy ways to make Venture Capitalist-type returns in the stock market. He said that 80-90% of investing success is luck. 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 heaped praise on Indusind Bank and Amazon, saying management changes, cash turnaround helped the companies in a big way.