Daily Voice | For Samvat 2080, this capital market guru makes it rich in the cutting-edge IT sector

 Daily Voice | For Samvat 2080, this capital market guru makes it rich in the cutting-edge IT sector

Samvat 2080 may usher in a new age for Gold, according to Nuvama's Shiv Sehgal.

The president and CEO of Nuvama Capital Markets is Shiv Sehgal.

According to Shiv Sehgal, president and head of Nuvama Capital Markets, a conservative strategy is ideal for wealth allocation in Samvat 2080. In an interview with Moneycontrol, he says, "But one can never be not bullish on equities given the dynamic nature of the Indian market."

Large-cap stocks, bonds, and gold are the top three investments on Sehgal's priority list because he thinks they have the best future potential. He feels that Samvat 2080 may usher in a new age for the yellow metal.

Sehgal, who spent over two decades working in the investment management and financial services sectors, has been bullish about the new-age market since Samvat and hasn't changed. Takeaways from the conversation:

In light of the fluctuations in FII inflow, do you think that domestic flows will continue to be robust in Samvat 2080?

Indeed, there is a continuing tendency that isn't limited to Samvat 2080. It will remain here. The subject of financialization is one that will continue to emerge in the Indian market. Beneficial domestic liquidity circumstances should guarantee robust and continuous DII flows this year.

However, given the higher yield environment and the worldwide shift in passive allocation from stock to debt, FII flows are expected to remain erratic due to uncertainty on a global scale.

Does the mid-smallcap space continue to seem pricey?

It seems that the Small and Mid-Cap stocks (SMID) market is unusually pricey. In addition to inflows from inside the country, the earnings cycle is essential to maintaining current values. Instead of strong demand, cheaper input costs are already driving profit growth via increased margins.

Now that the best of these circumstances has passed, midcap values might be at danger. Ongoing SMID fund inflows and industry interest, however, may maintain values high for an extended period of time.

The secret to SMID outperformance is to constantly choose stocks from the bottom up. There are still plenty of chances in this area. We keep finding undiscovered treasures that will eventually prove to be outperformers and provide long-term value.

Do you anticipate strong auto profit growth but a downturn in the consumer area in the next quarters?

Much of the margin growth in the automobile sector has already been realized. But in contrast to other industries, the car industry has relatively smaller margin adverse risks.

Do you believe that, in spite of the probable risk factors, Samvat 2080 will be better for the equities markets?

Depending on the particular market sector that an investor is investigating, one might determine whether the future year will see better or worse results in the stock markets. It seems to me that this year will be better for largecaps. But even with the current consolidation in midcaps, I'm still enthusiastic about that market.

In Samvat 2080, where would you want to invest your money?

I favor a prudent approach to wealth allocation for Samvat 2080. Still, one should never be too positive about stocks considering how volatile the Indian market is. Large-cap stocks, bonds, and gold are at the top of my priority list because I think they have the best future possibilities.

Will the best investment for Samvat 2080 be gold?

Yes, gold often shows to be a reliable investment in tumultuous times, particularly when the US dollar is also losing its appeal as a safe haven. Samvat 2080 may thus usher in a new age for Gold.

Are you investing in the new age area, particularly in the wake of the third-quarter results season?

Since the previous Samvat, we have continued to have a favorable view on the new age space. At the time, our main thesis focused on two crucial elements: i) a change toward profitability and lower cash burn, which helped these business models remain viable; and ii) the cycle of peaking global rates.

Since all of these arguments are still valid, we may continue to maintain our positive outlook on the emerging tech sector.

Do you still believe that investing in domestically focused industries is preferable than export-focused industries?

Indeed, with 1.4 billion people, we have a robust consumer economy that greatly lowers growth uncertainty for industries focused on the home market. However, the export-oriented industry is fraught with many unknowns and unpredictable circumstances.