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Pashupati Advani , Founder, Global Foray , says he has been analyzing struggling and stable sectors. The auto sector saw a decline in 2024, highlighting potential opportunities in underperforming areas. Auto sales are down, but decisions can wait.
Other affected sectors include oil, gas, and, to a lesser extent, energy and commodities, may see a turnaround this year. Public sector companies and banks are also facing challenges, presenting opportunities as they remain 10% to 20% below peak values. Overall, the market appears stable.
However, with investments returning to the US and optimism surrounding Donald Trump 's presidency, this shift may not benefit other regions. What is your outlook on the markets and which are the big themes that you are tracking at this point? Pashupati Advani: I have just been reading which are the sectors that have been hit and the ones that are not hit. One is the auto sector, which was down in 2024.
I am one of those who believe that you should look at sectors that have not done well and see if there are any hidden gems. So, one is autos. We see that there is pressure in auto sales.
There is still a little bit of time before you go into that. The other ones that have been beaten down are oil and gas and to some extent energy and commodities. This is the year when those are going to be the winners.
And to some extent, the public sector enterprises and public sector banks also have been hit. So, that is where one should be looking for hidden gems because they are 10%, 15%, 20% off their highs. Overall, our market is fine.
Though I am seeing flows going back to the US, there is a lot of optimism with Donald Trump coming to the White House that he is going to be good for the markets. As money is flowing back into the US, that is not good for the rest of the world, I am afraid. We are seeing that some of these metal counters are losing that shine.
Of late, there was a lot of hope building in with the China reopening and the growth triggers there. But all of that seemed to be fading away. So, any outlook to share on the sector? Pashupati Advani: Obviously that sector has been hit and is down almost 20% from last year’s highs.
. But at some point, they are going to turn. Now, whether it is going to be from Vedanta or Hindustan Zinc, that is what we need to look at because we need these metals for our construction.
We do need these metals for our roads. So, there is use for them. Stock Trading Masterclass on Value Investing and Company Valuation By - The Economic Times, Get Certified By India's Top Business News Brand View Program Stock Trading Market 104: Options Trading: Kickstart Your F&O Adventure By - Saketh R, Founder- QuickAlpha, Full Time Options Trader View Program Stock Trading Technical Analysis for Everyone - Technical Analysis Course By - Abhijit Paul, Technical Research Head, Fund Manager- ICICI Securities View Program Stock Trading Stock Markets Made Easy By - elearnmarkets, Financial Education by StockEdge View Program Stock Trading Renko Chart Patterns Made Easy By - Kaushik Akiwatkar, Derivative Trader and Investor View Program Stock Trading Market 101: An Insight into Trendlines and Momentum By - Rohit Srivastava, Founder- Indiacharts.
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There is still a slowdown in China and again, it depends on what Donald Trump does with them and what he does with the general public and how he allows China to enter and whether they are allowed to make money in the US. So, again, a lot of that we will know in policies in February, which will give us direction as to how we are going to do for the rest of the year. Any interesting ideas that you came about in December? Have you added more positions or even bought afresh? Pashupati Advani: I just wanted to say one thing, even though the Indian currency seems to be getting weaker, I think it is a game changer and that is the main thing we need to be looking at.
I am not particularly bullish on the IT sector which has gone down 5-7%. So, that is a sector which definitely will go down. I am very light, I have been selling out my positions in IT, because I actually do not think that our Indian IT companies are going to be able to make and now with this H-1B controversy that has been stirred up in the US, it is going to be even tougher for them to do business.
I think one should lighten up in the IT sector. We are going to get opportunities and definitely sell off shares in the IT sector. Any take on a stock like Trent because that has been the star performer of 2024? Given the kind of run-up and the valuation they still hold, any take coming in on Trent? Do you like the stock even at these levels? Pashupati Advani: No, Trent has been a great performer simply because it has been consistent and it is a visible, listed proxy on the growth of India.
People will continue to come in and Trent is Noel Tata's main company, his original company. I am sure even within Tata Sons, it will have a positive bias in terms of investment and in terms of strategy going forward because he knows that company better than any other. It is not that it should be bought or sold, but it is part of the market.
If you wanted to come in and get involved in the FMCG space, this would be a good place to come. When you compare it with say D-Mart, which is similar but different, at least you have got one more player to compare it with and Trent is par for par with that in terms of the way things are going. You Might Also Like: Net-net growth path visible for India in 2025; looking for rebound in consumption: Krishna Sanghavi Since we are talking about retail, what about these online platforms? Do you have both Swiggy and Zomato in your portfolio or does Zomato continue to be the out-and-out winner? Pashupati Advani: Four new wave stocks came to the market at the same time, Swiggy, of course, came later, but Zomato, Policybazaar, and Paytm have done well and continue to do well.
They came to the market at the same time. So, it has been an interesting time for them all. I am sad because I missed Paytm.
I mean, I was in and out of it too soon, and then missed the real move up to the 900 level, so that is my mistake. But I caught it right, but I did not move..
.. There are new players coming who are going to try and pick away, but I think it.
.. Just wanted to have your take quickly given this space and the kind of performance that we are seeing from the two-wheeler counter specifically, stocks like TVS Motors, Bajaj Auto have also corrected from higher levels in 2024.
Would you be a buyer in any of these two-wheeler stocks which is giving you a valuation comfort at these levels? Pashupati Advani: Honestly, the two-wheeler space is a little bit crowded right now and buying seems to have been stopped at the retail level. It has slowed down. It will come back, but all these stocks have to come back first, then we have to see two-wheelers going out the door and then that is the time to go back into them.
Right now, I am being a little cautious on the two-wheeler sector and the only one in the auto pack that seems to be doing well is M&M for it has tractors and other things as well and it has a vehicle that is different from everyone else. It seems to have its own following. The other two-wheeler stock to some extent is Enfield.
These two have been a little bit of a differentiator from the rest of the pack. So, let us see what happens. What is your take on some of these pockets that are showing good moves of late? Railways and defence counters are getting back in charge.
But given the kind of run-up that we have already seen and the kind of correction from higher levels, what is your view because the Budget is one month away. Could these stocks do better even from these levels? Pashupati Advani: The government is committed to spending in this sector – whether it is defence or infrastructure, which is primarily getting spent on railway infrastructure. I went and saw the hole in the ground that is going to be the bullet train from Mumbai to Ahmedabad and it looks pretty impressive and looks like it is going to be ready pretty soon.
These are all good steps for India's development and the government is fuelling it. There is not much private investment in these companies but obviously they benefit from getting their suppliers to this growth and that is where we should be looking to make money. You Might Also Like: India to be hit as Trump 2.
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