With the stock markets continuing to rise higher, clocking in newer records by every passing day, most investors are confused on whether they should be exiting with the profits now or stay invested despite the high valuations. Aashish Somaiyaa, CEO of White Oak Capital spoke to Money9 and shared insights on why does it make sense for investors to stay put.
“All time highs are not a reason for staying out of the markets. There will be pauses and corrections in every bull markets but I don’t see why stock markets can’t move higher from here. So staying out just thinking these are all time highs would not be right”, he said
On the new IPOs and valuations concerns on some of them with no profits, he said that while every IPO needs to be evaluated individually, he is positive on some of the new age digital companies which are household names and does not believe it is only a cyclical story but a structural change coming for good.
On Zomato he said, the PE cult in India is still new when we compare with the US and he also believes while there were concerns on Zomato’s valuations but had we waited for the company to prove itself for few more years perhaps from the current Rs 60-70,000 crore, the valuations could have surged to over Rs 2 lakh crore.
“There have been changes which are structural like digital adoption in the past 1.5 years and companies like Nykaa, Paytm, PolicyBazaar etc are the torch-bearers of digital adoption so am looking the new IPOs constructively”, he added.
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