Remain invested in Sensex, Nifty for at least three years, Saurabh Mukherjea, Ambit Capital

By: | Published: February 23, 2018 3:52 PM

The stocks are rich in valuations in the current scenario, so this strategy to remain stay put for at least 3 years holds all the more importance, says Saurabh Mukherjea.

US equity markets, Dow Jones, US stocks, Nirav Modi scam, Sensex, donald trump, US Congress, employment rateThe surging US bond yields will put an impact on the global equity markets, Saurabh Mukherjea said. (PTI)

Sensex and Nifty witnessed a huge turmoil in the last two weeks. A huge volatility was observed in the Indian stocks as VIX, the indicator of volatility, shot up substantially. In such a scenario, investors are  generally confused about how to go about investing in the markets. An investor should not invest in the stock market for anything less than three years, Saurabh Mukherjea, CEO, Ambit Capital told FE Online sharing his market outlook. The stocks are rich in valuations in the current scenario, so this strategy to remain stay put for at least 3 years holds all the more importance, says Saurabh Mukherjea. This strategy applies totally on the companies whose revenues have soared at nearly 10 percent annually over the last 10 years alongside 15 percent ROCE, he added.

The surging US bond yields will put an impact on the global equity markets including the Indian stock markets, said he on being asked about the possible downward triggers for the markets going ahead. In case of bond yields of US 10 year bonds going up by 3 percent, Indian stocks can see much bigger correction. The yields will also be impacted by the wage hikes in the US and movement in oil prices, Saurabh Mukherjea said.

Even though global sell-off resulted in dips in stocks markets, investors shouldn’t rush into buying equities. The investors should properly research companies and only choose the stocks with strong earnings, advise market experts. One should only go with stocks with strong earnings momentum, Ashutosh Datar, Equity Strategist at IIFL Institutional Equities says.

As revenue growth has remained strong along with momentum across companies, it is a key positive, Ridham Desai of Morgan Stanley said. Sharing his market strategy, Ashutosh Datar says he is particularly underweight on the financials as valuations have been caught up in some of the IT companies. 2018 may remain volatile for stock markets, Nilesh Shah, MD, Kotak Mahindra AMC told CNBC TV18. As per Nilesh Shah, the road ahead for the stock markets will depend on the uptrend in corporate results. In addition, clarity on 2019 elections verdict will decide how the markets will move ahead.

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