After achieving 25,000 mark, Amit Jain, the Co-Founder of Ashika Global Family Office Services is taking a cautious approach for the Nifty as well as broader market for at least next 6 months.

From here on, the market may be very volatile around US elections, he feels.

Among sectors, Amit, who has over 14 years of experience in the Indian Banking & Financial Services Industry, is bullish on the PSU banks and very few PSUs at today's prices.

On the Ola Electric Mobility, he is cautious at current valuations. "While some brokerages see potential upside, the current high valuation coupled with significant volatility suggests caution for new investors."

Do you see the chances of continuation of major upside in the equity market than major downside in coming months? What are the key triggers?

In my last interview on 18th August, 2023 with Money Control I said that Nifty will touch 25,000 which is now a reality. In the last 1 year, Nifty has given 27 percent return which is a fantastic performance by all standards. In the last 1 year, the Indian stock market has outpaced all other global stock markets in the world.

However, now after accomplishing our target of Nifty @ 25,000. We are taking a cautious approach for the Nifty and broader market for at least next 6 months. From here on, the market may be very volatile around US elections which may create opportunities for fresh investment for medium to long term investors.

Do you see the big flow of IPOs (mainboard) in coming months considering the healthy equity market conditions?

With the Nifty 50 and Sensex reaching record highs, the Indian equity markets are poised for a surge in mainboard IPOs in the coming quarters. High-profile companies, such as Bajaj Housing Finance and Hyundai Motor India, are launching their IPOs soon. The successful listing of recent IPOs has demonstrated strong investor appetite. The market's ability to absorb a significant number of IPOs remains to be seen.

Are you taking a cautious approach while investing in SME IPOs?

Yes, Indeed. Although investors have made a lot of money in the SME IPOs. We hold a cautious view on SME IPOs. Only after thorough analysis, people should make a decision of applying in these SME IPOs. We have been noticing a huge up-trend in them. When allocating the investments of our Global Family Offices, we make sure that the companies that we invest in are always fundamentally strong with an upside on the growth prospect.

Which are the sectors on your radar for investment now?

As we are expecting a market correction in both the Global and Indian Stock Markets, we have identified particular sectors and even in those sectors we are bullish on very specific stocks. This is because unlike the bull run we have witnessed in the first half of the year is a thing of the past and only very specific stocks will be generating alpha going forward. With the current market situation, I am bullish on the PSU Banks and very few PSUs at today's prices. From the index, I like Bank of Baroda, Bank Of India at current levels.

Your take on Bajaj Housing Finance IPO?

Bajaj Housing Finance's upcoming IPO presents a compelling opportunity, but it warrants a cautious approach. As a subsidiary of Bajaj Finance, it benefits from a robust brand reputation and strong backing. The company has a solid track record of profitability, low delinquency rates, and a diverse loan portfolio, which enhances its appeal in the growing housing finance sector. However, potential investors should consider risks such as rising interest rates and competitive pricing. The IPO's size of Rs 6,560 crore indicates significant market interest, but careful analysis of its financial health and market conditions is essential to make an informed investment decision.

Do you think Ola is still an overvalued stock?

Ola Electric's stock seems overvalued, especially after its recent surge, which has seen it trading at a valuation higher than Tesla. Despite a 107 percent increase from its IPO price, the company's market capitalization reached approximately Rs 55,000 crore, while it reported widening losses of Rs 347 crore in the last quarter. We are cautious on this stock at current valuations. While some brokerages see potential upside, the current high valuation coupled with significant volatility suggests caution for new investors.

Source- Money control website.

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