Investors who were betting on the market recovery after the crash in March 2020 in a big way have now turned cautious, according to Sudip Bandhopadhyay, Group Chairman, Inditrade Capital,
“While during the first wave we saw large numbers of de-mat accounts being opened as investors were hitting the street to take advantage of the bull scenario. This time, investors are nervous as the virus has hit home now. Everyone has been affected in some way, unlike last time,” he told Money9.
He said unlike global markets, investors in India have adopted a cautious approach.
“While the risk on sentiment continues for global investors, as we are seeing US markets touching all time highs, however in India, investors have turned more cautious. Markets are witnessing profit-booking
at higher levels,” he said.
On the impact of the second wave on the market trend from here on, he said: “Markets are sideways and volatile however they are not crashing despite the negative news as there is an underlying belief that the second wave will end soon.
He also believes that for long-term investors, there are great opportunities to invest in good stocks at current levels.
“We are seeing a commodity super cycle going on currently, first the metals and now agri-commodities are seeing a sharp rise. I’d urge investors to look at the sugar space as they may see a multi-year re-rating on the back of government’s move on ethanol blending. Apart from this, he also believes the cement story will be a very strong one for the next couple of years,” he said.
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