Buy small-cap company stocks in their second innings, says investor Shankar Sharma

By: | Updated: October 13, 2017 1:39 PM

"My philosophy is to buy things that people don't like to buy. I look at the second innings of the companies as they correct their past mistakes," Shankar Sharma said.

Shankar Sharma says all his companies are second inning companies.

Ace investor Shankar Sharma has said that all his companies are “second inning” companies, and suggested every single dip in small caps is an opportunity. In an interview with ET Now, Shankar Sharma said, “My philosophy is to buy things that people don’t like to buy… I look at the second innings of the companies as they correct their past mistakes.”

Shankar Sharma 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 had earlier 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.”

Get live Stock Prices from BSE and NSE 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.

Switch to Hindi Edition