I Love Stock Market Crashes Says Shankar Sharma While Porinju Veliyath & Vijay Kedia Soothe Nerves Of Hysterical Investors

Opposing ideologies but common affection for novices

It is no secret that Porinju Veliyath and Shankar Sharma are poles apart in their political ideologies.

While Porinju has condemned RaGa as an “intellectually challenged special child”, Shankar has heaped praises on him for “stratospheric mental strength” and “amazing qualities of resolve and toughness“.

The two stalwarts also have opposing views on economic matters.

While Shankar sent the dire warning that LTCG tax will “kill the equity cult” in India, Porinju welcomed the levy of the tax.

However, whatever may be their differences, it cannot be disputed that the two are united in their affection for novices.

In the past, we have seen the duo come rushing to the rescue of novices whenever the situation turned grim and it looked like all is lost.

In the present ongoing correction in the stock markets, Shankar voluntarily came forward to hold the hands of nervous investors.

“These moments keep happening so regularly in markets: you get your favourite stocks 30 percent lower, in days. With nothing having changed in their outlook. Love such situations,” he said in a soothing tone.

These moments keep happening so regularly in markets: you get your favourite stocks 30 percent lower, in days. With nothing having changed in their outlook. Love such situations ?

— Shankar Sharma (@1shankarsharma) February 5, 2018

“The market is a buy,” he added confidently.

The market is a Buy. Too much global tailwind for Emerging Markets for India to buck. That said, I doubt the Fiscal target will be met. And macro outlook is worrying, given my view on Oil which looks an absolute rocket.

— Shankar Sharma (@1shankarsharma) February 1, 2018

Shankar’s proactive approach of offering advice had the desired effect.

Some investors peeped out of their bunkers to see what is happening.

One asked nervously whether a “big correction is knocking the door”.

“Nothing to worry,” Shankar replied in his crisp baritone, with a comforting smile.

Sir, I really admire your market acumen and insight. Have been following you since long through interviews and articles. What is your take on 2.5% Dow correction on Friday? Could a big correction be knocking the door?

— Shweta dubey (@Shwetadubey21) February 3, 2018

Nothing to worry. There hasn't been a meaningful correction in markets for a while

— Shankar Sharma (@1shankarsharma) February 3, 2018

No need to panic, large number of beautiful compounders to feast on

In the past we have seen that Porinju Veliyath and his ace team at Equity Intelligence closely monitor the situation at Dalal Street.

When the panic levels reach a danger point, Porinju releases a barrage of tweets designed to calm the nerves of novices.

“Nifty@10600 – not a good time to panic,” Porinju said.

He cleverly made a reference to “well-corrected” mid & small cap stocks to send the subtle hint that the worst may be behind us.

Nifty@10600 – not a good time to panic especially in the well-corrected mid & small caps (in general). Nifty likely to drift down to 11,800 levels in a minor correction during Q3-FY19. https://t.co/UyppLfN3Ap

— Porinju Veliyath (@porinju) February 5, 2018

When he had the novices’ attention, Porinju gently counseled them to give up their obsession for “multibaggers” but instead to focus on “beautiful compounders”.

At this stage, we must recall that Porinju has already recommended six high-quality large-cap and mid-cap stocks for us to buy in the aftermath of Budget 2018.

The term 'multi-bagger' will not be used as frequently as in the past, but we have a large number of beautiful compounders going forward! You can bet really big on the unprecedented improvement in 'Corporate Governance' in the listed space! #ChangingIndia

— Porinju Veliyath (@porinju) February 5, 2018

Pyaar kiya to darna Kya: Vijay Kedia

Vijay Kedia has his own unique style of counseling novices when they are emotionally feeling hysterical.

He knows that high-brow intellectual gyan does not work in these situations.

Instead, you have to appeal to the sentiments of the novices with a bit of light-hearted humor.

“To all my long term investors; Lovely Madhubala had told us a long time ago…"Pyaar kiya to darna Kya.,” he quipped with a wide and cheerful smile.

To all my long term investors; Lovely Madhubala had told us a long time ago…"Pyaar kiya to darna Kya "#MondayMotivation pic.twitter.com/x9kmEGNBFo

— Vijay Kedia (@VijayKedia1) February 5, 2018

This had the desired effect and released the tension amongst his followers.

???

— Rohit Gadage (@rohitgadage999) February 5, 2018

Vijay Kedia added in a serious tone that investors should invest only in quality stocks to stay “happy and fearless”.

It means don't leverage, don't get over excited. Keep a balanced mind. Always remember, any stock can fall 10- 20% and more anytime in any kind of market, without any warning. Invest only in quality cos for long term, to stay happy and fearless. https://t.co/OOR7FIHtBF

— Vijay Kedia (@VijayKedia1) November 13, 2017

Bull Market is ongoing, this is mere correction: Ramesh Damani

Ramesh Damani provided authoritative perspective to the situation.

“This is the correction of a bull market. Corrections in bull market are always sharp, short and swift,” he said.

“The Indian economy is on a growth track … there are businesses, companies which are doing well. Until proven, I am going to remain that this is a bull market, and this is a correction of the bull market,” he added.

Ramesh Damani also advised that investors should stop obsessing about stock market fluctuations and instead focus on finding “great businesses” and hold on to them tightly through thick and thin.

“We have to find good management running great businesses and then we are happy to hold them for a long period of time. Businesses don’t go bad because the markets goes down. So, we are ready to hold them even in economic downturn”, he advised.

“I want to be convinced that there is a great opportunity and there is a management which has the ability to beat that opportunity and I think the opportunity should exist no matter what happens in the external environment,” he added.

“Look at life cycles of businesses …. retain those businesses. Over time, that has been a winning strategy,” he exclaimed.

JUST BUY if you are sure of your homework: Shyam Sekhar

Shyam Sekhar also chipped in with valuable advice that corrections are the best time to “buy businesses which beat cycles”.

Panic mongering is best ignored. Stick to valuations. Buy businesses which beat cycles. The time to buy is always when others are fearful.

— Shyam Sekhar (@shyamsek) February 5, 2018

He also referred to the age-old wisdom that investors have to choose between “sentiment” and “price”. They can’t have good prices with good sentiment.

When the price is in favour, sentiment will definitely be out of favour.

— Shyam Sekhar (@shyamsek) February 5, 2018

JUST BUY if you are sure of your homework. https://t.co/tWLdimwF8y

— Shyam Sekhar (@shyamsek) February 5, 2018

Best stocks to buy now

At this stage we have to lament the fact that while all the Gurus united to give us theoretical advice that we should take advantage of the correction to buy high-quality stocks, none bothered to recommend a few stocks to us.

Surely, the Gurus know that mere theoretical advice is not sufficient for novices and that we need practical and tangible advice?

Thankfully, there is no reason to despair because the wizards at Stewart & Mackertich (SMIFS) have risen to the occasion and recommended six stocks which will benefit the most from taxation measures levied by the Budget 2018.

These stocks are the following:

Budget Top Picks

Hindustan Unilever Ltd

Hindustan Unilever Ltd is India’s largest FMCG company with leadership in Home & Personal Care segments. With over 35 brands spanning 20 distinct categories such as soaps, detergents, shampoos, skin care, toothpastes, deodorants, cosmetics, tea, coffee, packaged foods, ice cream, and water purifiers, the Company is a part of the everyday life of millions of consumers across India. Its portfolio includes Lux, Lifebuoy, Surf Excel, Rin, Wheel, Fair & Lovely, Pond’s, Vaseline, Lakmé, Dove, Clinic Plus, Sunsilk, Pepsodent, Closeup, Axe, Brooke Bond, Bru, Knorr, Kissan, Kwality Wall’s and Pureit.

Mahindra & Mahindra

Mahindra & Mahindra manufactures automobiles, firm equipment and automotive components. The company’s automobile products include light, medium, heavy commercial vehicles and utility vehicles. It also manufactures agricultural tractors, agricultural implements, internal combustion engines, industrial petrol engines, spare parts and machine tools. When it comes to agricultural segment, M&M is the undisputed leader with a staggering market share closer to 50%.

Rallis India Ltd

Rallis India Ltd, a subsidiary of Tata Chemicals, is one of the leading agrochemical companies of India with a history of around 160 years. Its core business is crop protection. The company undertakes contract farming and also exports technical-grade pesticides, branded formulations across the world. Rallis also has marketing alliance with several multinational agrochemical companies and is a preferred partner for contract manufacturing by leading global corporations.

L&T Technology Services Ltd

L&T Technology Services is a leading global ER&D services company, backed by the rich Engineering expertise and experience of parent company, Larsen & Toubro Limited. They are the only Indian pure play engineering R&D Company of its kind to offer ER &D services and solutions to all major industries viz. Transportation, Industrial Products, Telecom & Hi-Tech, Medical Devices and Process Industry. With a strong focus on digitalisation, the Company is well equipped to provide smart solutions for city surveillance, intelligent traffic management systems, transport and logistics, as it partners the Indian Government in its Smart City mission, among other key national initiatives.

Jk Tyre and Industries Ltd

JK Tyre & Industries Ltd. (JKIT) is an India-based company engaged in the business of manufacturing of automotive tires, tubes, and flaps, the Company had an installed capacity of 9.861 million automotive tires and 1.382 million automotive tubes. They have annual capacity of 32mn tyres with 12 manufacturing plants globally and wide range of products with a presence in over 105 countries. Currently they are dealing with vast distribution and service network with over 4,000 dealers in India.

SH Kelkar & Co Ltd

S H Kelkar is the manufacturer and exporter of Aroma/Perfumery/Fragrance/Flavour chemicals as well as Fragrances/Perfumes and Flavours. It has a long standing reputation in the fragrance industry developed in 90 years of experience. Its fragrance products and ingredients are used as a raw material in personal wash, fabric care, skin and hair care, fine fragrances and household products. Its flavor products are used as a raw material by producers of baked goods, dairy products, beverages and pharmaceutical products. The Company has a diverse and large client base of over 4,100 customers including leading national and multi-national FMCG companies, blenders of fragrances & flavors and fragrance & flavor producers.

Big recovery in Dow futures

— Darshan Mehta (@darshanvmehta1) February 5, 2018

Conclusion

It is obvious that we cannot ignore the unanimous advice offered by the eminent gurus. It is better if we come out of our bunkers and scoop up top-quality stocks when they are still available at bargain basement prices!