Slowdown is so severe, people have stopped buying underwear
According to some junk intellectuals like Shekhar Gupta, the slowdown in the Indian economy is so severe that people are not even buying underwear.
Indians are not buying underwear. That’s how bad the economy is
ThePrint's special correspondent Himani Chandna @ChandnaHimani reportshttps://t.co/9aLdxMFqQQ
— Shekhar Gupta (@ShekharGupta) October 25, 2019
It is obvious that the intellectuals are making buffoons of themselves and destroying their own credibility by exaggerating the situation.
While there is no denying that there is a slowdown, the fact is that several sectors are firing on all cylinders and out-performing.
Bajaj Auto, for instance, reported its “highest ever retail sales of all businesses” in its history.
Bajaj Auto reports highest ever retail sales of all businesses in history of co. Festive season growth at 28% YoY. November sales could decline because of a strong festive season, says Bajaj Auto pic.twitter.com/GLobruMvjx
— CNBC-TV18 (@CNBCTV18Live) November 1, 2019
Similarly, Syndicate Bank is expecting loan growth of 10-11% for FY20 which obviously means that there is demand for funds from Industry.
Syndicate Bank’s MD & CEO Mrutyunjay Mahapatra tells CNBC-TV18 that they expect loan growth of 10-11% for FY20. Here is the conversation with @_soniashenoy & @latha_venkatesh@kothariabhishek pic.twitter.com/BDoz8RgR8t
— CNBC-TV18 News (@CNBCTV18News) November 1, 2019
Even M&M, which supplies tractors to farmers, reported “highest ever monthly deliveries” in October 2019, which implies that the rural economy is also thriving.
Congratulations to our Tractor sales team and dealer partners for achieving the highest ever monthly deliveries last month. I hope this is a sign of things to come in the next few months. @MahindraRise
— Pawan K Goenka (@GoenkaPk) November 1, 2019
In fact, the biggest proof of the pudding is the stock market because the stock market is the barometer for the entire economy.
The Sensex has surged to an all-time high which implies that all is well and/ or that the fears are unfounded/ exaggerated.
Sensex hit an all-time high.
Top Automobile companies Shares up by 50-70%.
What a slap on those arm chair dolt economists— Rishi Bagree ऋषि ?? (@rishibagree) October 31, 2019
BIG BREAKING: Sensex hits all time high. It pays to keep confidence in the India story and ignore the doomsday commentary.
— Anuj Singhal अनुज सिंघल (@_anujsinghal) October 31, 2019
I bought many stocks to benefit from the panic situation
Anyway, we can see the stark difference between the manner in which an academician/ intellectual reacts to the situation and how a practitioner reacts.
In August, when there was panic selling across the board, Sandip Sabharwal moved in and aggressively bought quality stocks at bargain-basement prices.
“Huge panic creating lot of value .. If markets fall another 5% will move FD’s into the market,” he said with supreme confidence.
I bought many stocks today.Huge panic creating lot of value
Not sure if will go up next month but will make big money over 2-3 years for sure
If markets fall another 5% will move FD's into the marketI am sure @narendramodi will eventually act & not destroy the massive mandate
— sandip sabharwal (@sandipsabharwal) August 23, 2019
He also pointed out that sensible investors have to buy the “right company” at the “right price” and the “right price” can be got only in times of uncertainty and despair and not when there is euphoria in the air.
Well, if I read your profile these things should not bother you. You need to buy the right company at the right price. Right price comes when there is uncertainty not euphoria.
— sandip sabharwal (@sandipsabharwal) August 23, 2019
Needless to say, today, just a few months later, all the talk about gloom and doom is a forgotten memory and Sandip Sabharwal is basking in hefty gains.
While people were shouting in August
Cars are not selling
Innerwear are not selling
Biscuits are not sellingWe bought Autos, Page Industries and Britannia.
Average gains 32% till now
— sandip sabharwal (@sandipsabharwal) October 31, 2019
Even Page Industries, the quintessential “underwear stock“, which was supposed to be the hapless victim of the slowdown, is surging to new highs, proving that the hypothesis of the junk intellectuals is totally bogus.
As a Fund Manager I bought Page Industries in 4 digits when I used to manage funds
After I moved out of Fund Management, I always wanted to buy but the stock never gave an opportunity
Bought at 17500, 3 weeks back, now at 25000.
Seems unbelievable.Thank you panic sellers…
— sandip sabharwal (@sandipsabharwal) September 23, 2019
Don’t be a pessimist, buy quality stocks cheap
Sandip Sabharwal has pointed out that a common tendency amongst novice investors is to make excuses and avoid taking decisions.
When the markets crash, the novices wait for it to crash more.
When the markets surge, they wait for it to crash and go back to the previous levels.
They move in only when the ‘FOMO‘ (Fear of Missing Out) becomes intolerable by which time stocks begin quoting at stratospheric valuations and there is not much juice left on the table for harvest.
Instead of this sorry practice, the best strategy is to keep an eye on high-quality stocks and continuously buy them whenever there is a correction.
Many in the Stock Markets are always waiting for the markets to crash
When they crash, they expect them to fall furtherThen when they rise they wait for them to fall again
That way they never buy quality stocks cheap &
Normally end up buying Junk at the very top
— sandip sabharwal (@sandipsabharwal) October 31, 2019
The pessimists when
Markets fell 12% from June to AugustMarkets will go to 9000…
The pessimists after markets have risen 12% from the bottom
Markets have risen too much too fast….
— sandip sabharwal (@sandipsabharwal) October 31, 2019
Stocks to buy now
According to Sandip Sabharwal, ICICI Bank, the largest private sector bank, is a ripe candidate for investment.
The Bank has been on a steady upward trajectory on the back of an improvement in operational performance.
ICICI Banks performance over the last one year has been exceptional.
Its outperformed on the income side
outperformed on the assets side
avoided most controversial accounts and
cleaned up the balance sheet at an unprecedented speedMore rerating likely
— sandip sabharwal (@sandipsabharwal) October 28, 2019
Larsen & Tuobro, the blue-chip infra behemoth, is also a safe and secure pick.
Larsen and Toubro has outperformed expectations for several quarters in a row.
However given macro concerns on the Economy stock has underperformed.Next one year the stock should get it's proper valuation similar to ICICI Bank taking off after a long period of consolidation
— sandip sabharwal (@sandipsabharwal) October 24, 2019
Blue-Chip Auto stocks like Bajaj Auto, Hero Moto, Maruti Suzuki, Tata Motors are also fail-safe contenders for our money.
We can also consider small-cap and mid-cap auto ancillary stocks like Minda Corp, Jamna Auto, Lumax Auto Tech, Amara Raja etc which are run by managements of impeccable credibility and with a long track record of growth and profitability.
Many Auto Companies report best ever Retail sales. However a combination of
Pipeline clearance and
Impending BSVI deadline
leads to lower dispatches from CompaniesHowever overall positive. If demand sustains there will be again a pipeline build up.
— sandip sabharwal (@sandipsabharwal) November 2, 2019
Sandip Sabharwal also advised that high-quality NBFC stocks, which have been beaten down badly in the wake of the ILFS and DHFL scandals are likely to regain their past days of glory.
Some names that come readily to mind are LIC Housing Finance, L&T Housing Finance, Edelweiss, Can Fin Homes, PNB Housing, IndiaBulls Housing etc.
In fact, these stocks are already surging and posting impressive gains over the past few days.
Top rated NBFC's who have been engulfed in the quagmire of DHFL, ILFS etc will be the next big movers after Autos
Watch that space….
— sandip sabharwal (@sandipsabharwal) October 31, 2019
He (SS) may claim anything but he made others to suffer by giving wrong advise consistently. He made other to suffer when they taken annual subscription.
In fact, buying quality stocks during market bust times is no brainer if you believe in India’s growth story. In fact, may traders adopt this tactic for a few hours to a few days and investors also do it for medium term, say, a month or three months or so.
Yes.Its True,right investment,in right stock at right time with patience as key factor certainly give hefty returns in future….
Chola is a highly underrated stock in the NBFC sector
Plz don’t adhere and get trapped under the fake suggestions and advises of any greedy SS or RJ. I’m also a victim adhered their propoganda of Dish tv at Rs. 72 and now it was below 15.
I don’t understand when the crash happened in the market recently. Is Sensex at 36K called Crash?.
Invest in best indian leadership consistently growing stocks,stay away from junk grade