Ace investor Shankar Sharma on Wednesday said that there is an opportunity to make money in the infrastructure sector and the insurance sector in the long term as they are seeing a big bull market. In an interview with CNBC-TV18, Shankar Sharma said that one should look for opportunities where debt can be addressed and assets can be sold, and infrastructure is one of those.
While, Shankar Sharma bets on infrastructure and insurance, he is not in favour of investing in the telecom industry. He said that the price understanding for the telecom industry is still a few quarters away. He had earlier suggested that every single dip in small caps is an opportunity.
Shankar Sharma also strongly advised investing in small caps. “We will see a small cap bull market from here. I am unequivocally saying that small caps need to be bought as every single dip is an opportunity,” Shankar Sharma of First Global said. Shankar Sharma said that even small caps and mid caps are prone to risks but they will not be at a major level for some time.
Shankar Sharma who believes, 80-90% of investing success is luck, said currently there is a lot of room to cheer in the market. “India is not a growth bet, but the stock market will do well,” he said, adding that one should forget the past and look into the future. “Bull market in small-cap still very young,” he said.
On his own investments, Shankar Sharma said that he is locked in HFCL for a long time and their promoters are doing the right thing to reduce company’s debt. He said that the rates will slope lower in future which is going to drive markets higher.
Recently, Sandeep Bhatia, Head of India Equities, Macquarie Capital Securities also said that India is ‘buy on dips’ market. “Anything above 10% is an excellent buying opportunity. The market goes through its stages, so now we seem to be climbing a mountain of worries metaphorically, and therefore, the markets will take a breather,” he said adding, “I don’t think anything structurally has been impaired in the economy.”