HomeMarket NewsTime to realign investment strategy to focus on quality over quick gains, advises Pankaj Tibrewal
Time to realign investment strategy to focus on quality over quick gains, advises Pankaj Tibrewal
There is value in some sectors such as pharmaceuticals, private sector banks, consumer names on both urban and rural discretionary, said the founder and CIO of IKIGAI Asset Manager.
With the Lok Sabha election outcome indicating policy continuity, Pankaj Tibrewal, Founder and CIO, IKIGAI Asset Manager, believes it may now be time to realign investment strategies.
“Quality will be preferred over momentum investing. One should avoid the low free float stocks which are there in the market, one should not get carried away by only narratives and also give precedence to quality and fundamentals,” he advised investors in a chat with CNBC-TV18.
There could be a decline in the number of stocks performing well.
There could be a shift toward growth investing, which targets companies with high growth potential, versus value investing, which targets companies that are currently undervalued, he noted.
“If you don’t readjust to the portfolio, it could be painful from the next 18-24 months perspective,” he said.
He believes the capex stocks are pricing in a lot of growth. However, the margin of safety is extremely low.
Also Read | Trade Setup for June 6: Is the Nifty back on track after three days of extreme moves?
“Markets are offering value in other parts –pharmaceuticals, private sector banks, consumer names on both urban and rural discretionary. Overall, it will be the market breadth which will narrow down,” he said.
Speaking about coalition government, he said, “There will be pulls and pressures across and let us see how market takes it as you move ahead. The immediate focus will be on the government formation and then over the next 45 days, the budget will be presented and we will see what is the narrative in the budget is going to be.”
Also Read | Andrew Holland expects pressure on midcaps and smallcaps to continue in the near term
For more, watch the accompanying video
“Quality will be preferred over momentum investing. One should avoid the low free float stocks which are there in the market, one should not get carried away by only narratives and also give precedence to quality and fundamentals,” he advised investors in a chat with CNBC-TV18.
There could be a decline in the number of stocks performing well.
There could be a shift toward growth investing, which targets companies with high growth potential, versus value investing, which targets companies that are currently undervalued, he noted.
“If you don’t readjust to the portfolio, it could be painful from the next 18-24 months perspective,” he said.
Also Read | How to invest now that election results are out
He believes the capex stocks are pricing in a lot of growth. However, the margin of safety is extremely low.
Also Read | Trade Setup for June 6: Is the Nifty back on track after three days of extreme moves?
“Markets are offering value in other parts –pharmaceuticals, private sector banks, consumer names on both urban and rural discretionary. Overall, it will be the market breadth which will narrow down,” he said.
Speaking about coalition government, he said, “There will be pulls and pressures across and let us see how market takes it as you move ahead. The immediate focus will be on the government formation and then over the next 45 days, the budget will be presented and we will see what is the narrative in the budget is going to be.”
Also Read | Andrew Holland expects pressure on midcaps and smallcaps to continue in the near term
For more, watch the accompanying video
(Edited by : Shweta Mungre)
First Published: Jun 6, 2024 3:00 PM IST
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