L&T | Bull Market: Sudip Bandyopadhyay’s Tips on Managing Money in a Raging Bull Market
We are all surprised, some are baffled but everyone is scared now after the recent rally as we have not seen a correction. How do you manage money in this kind of market?
This is exactly the question everyone asks themselves all the time, at least investors. They saw this skyrocketing and some of them waited for a correction to pick up stocks, but that correction never happened and they are faced with a bigger dilemma to enter the market now or not. We have regularly advised investors – and we deal with long-term investors, not day traders – that if you like a stock and a stock has been recommended to you and you agree with that recommendation, go on. just buy. Don’t wait for the correction. Even if there is an intraday or period correction, when you believe in a stock, you know the stock is going to go up. So don’t try to time the market, just enter the market.
Getting back to specific sectors or specific stocks, we have been bullish in a few sectors and continue to hold our position there. We believe that all public sector spending, government spending is real and needs to happen. It’s just a matter of time.
So, construction, infrastructure, cement and related fields are certainly worth looking at and buying. We have been recommending L&T for almost a year. He saw some movement but I think this is just a trailer, there is still a lot of movement.
The sum of the parts of L&T is much greater than the value we get from L&T today. The core business of infrastructure, capital goods and construction will take a big boost in the future. Some of them need to be looked at.
Other areas that we’ve been optimistic about for the past year and a half are technology, IT in particular, and we’ve seen what’s happening in IT. There is still a significant opportunity for this to rise even further from current levels. There are a few other sectors or pockets.
In Pharma and Specialty Chemicals there is a multi-year revaluation underway, but you need to be extremely specific about the stocks as there is some price pressure in the US when it comes to Pharma and Specialty Chemicals. Prices have risen considerably and you have to be a little careful when choosing specific stocks.