Contrarian Investing and Indian Economy

 Nifty-50 has scaled mountain 17K quite comfortably on 31st August and sustained that level. On the same day Indian economy has shown signs of strong comeback with 20.1% GDP growth in FY 2021-22.  It is definitely proud moment for all Indian investors. Because apart from the excess liquidity and related factors, clearly India has emerged as the bright spot in emerging markets post Covid-19 outbreak. FII's are pouring in money and trusting the India story. Retail investors have also joined the party by maximum participation during last 1.5 years and earned well. 

Now, what next for the market? There are contrasting views within the market experts: First one believes that markets are clearly overvalued and its time to get out as soon as possible. While the other set says, it is just the beginning of a large scale bull market similar to that of 2009-2016. My Opinion: Market is supreme! Never try to predict the market. People waiting for 6500 levels for Nifty in March-2020, can concur to this opinion quite well. So, I feel though bull market might continue for a while, but its time to be contrarian. As Pharma and IT have lead this rally and every market analyst is recommending to put in money in these stocks, I feel its time to look for India story after 10 years. We should focus on Auto sector stocks that will push the EV revolution, FMCG stocks as huge consumer demand in India is on the cards. Also paint sector stocks look strong from here on. There will be tsunami of domestic money into the equity markets in India. 

All in all ,as the visionary Warren Buffet says - Go against the crowd, because it is mostly wrong!

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