How to time share market? Small cap guru Shankar Sharma has this advice

By: |
February 7, 2020 7:07 PM

Timing the share market or predicting future stock movements is a challenging task as the outlook depends on a slew of factors including fundamental and technical.

bseThe investors should not apply logic to the share market as it’s a different animal altogether, small-cap investor Shankar Sharma.

Timing the share market or predicting future stock movements is a challenging task as the outlook depends on a slew of factors including fundamental and technical. However, stock market veteran Shankar Sharma says that getting too logical is of no use when trading. The investors should not apply logic to the share market as it’s a different animal altogether, small-cap investor Shankar Sharma told ET Now in an interview. On growth slowdown, he said that if the growth rate increases, it may be due to factors other than the government’s doing.

Sharing the investment strategy, the ace investor said that he likes to pick individual stocks and not really invest in any small-cap focused index. “When I say I like small caps, the reality is that I don’t like a small-cap index but 10-15 small caps,” Shankar Sharma said in an interview with CNBC-TV18. Shankar Sharma revealed that his ‘biggest bet’ in the last two-and-a-half years has been in the chemicals space. “You go and look at the list of 7-8 stocks in that space. They have done phenomenally well,” he said.

Meanwhile, the equity benchmarks — Sensex and Nifty — closed in the red for the first time this week on Friday as investors cashed in on recent gains amid subdued global market sentiment due to the coronavirus outbreak. After a lacklustre session, the 30-share BSE Sensex closed 164.18 points or 0.40 per cent lower at 41,141.85. The broader NSE Nifty settled at 12,098.35, down by 39.60 points or 0.33 per cent. On a weekly basis, the Sensex surged 1,406.32 points or 3.53 per cent, while the Nifty rose 436.50 points or 3.74 per cent. Profit-booking after the four-day rally and weak global cues weighed on the indices on the last day of the week, traders said.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1Bank of India gets shareholders approval for raising Rs 8,000 crore
2Karnataka farmers urge Centre to exempt ‘Bengaluru Rose’ onions from export ban
3IPO market in for a busy week; should you invest in CAMS, Chemcon Chemicals, or Angel Broking?