2 weeks Ago
Varun Saboo , Head-Equities, Anand Rathi Shares , says if consumption will not correct, it will consolidate. He is pretty bullish across sectors. The two themes which I really like are A) the aspirational theme and the b)capex story.
I see a sharp pickup in capex with continuity in government and the outlook around it also. Pharma is still growing in single digit – 7-8%. So, what is the excitement all about? Varun Saboo: So, there is a lot of excitement about what we see around this entire Biosecure Act which is going to be there.
So, when we talk about these names which have been doing well, be it Divi’s, be it Syngene, be it all of these names, they have been doing very well around that, so the entire thesis is getting based around China plus one. This entire CDMO space could look very good going forward as well. Till the time that is in place plus with Donald Trump coming, the conviction around the same goes even higher.
So, all of these names will do well including Laurus Labs. I do not see a reason why this rally should not continue. Are you looking at adding more from Adani Group of stocks? Varun Saboo: This entire correction which happened, obviously I am no judge to this.
I cannot be talking about what has happened around this entire thing, but in the past also, we have seen the same thing when Hindenburg came out and spoke about all those things around the company. They came out with a complete clean chit and proved that they were clean. Again, it is from the US that we are seeing these kinds of allegations coming and which seem to be quite baseless.
I do not know, as I said I am no . So I think this is a good time to look at these names. They have great assets, Adani Ports is one of the best companies, best assets in the country today.
They have ACC, Ambuja. Eventually they are going to be the second largest or probably the largest cement company in the country. So, I do not see any reason why one should not buy these companies in this correction.
There has been a lot of noise from the US around these names. I do not see any merit to it based on how history has proven it wrong. What is your big trade for 2025? Every year, we get one or two trades.
For example, quick commerce has been a great trade this year. Defence was a great trade for 2024. Railways was a fantastic trade for 2023.
What is the trade for 2025? Varun Saboo: Aspirational theme is the biggest trade for me in the country today. I think the biggest play here is Eicher Motors , keep an eye on it. Not only for 2025 but from here for the next three to five years, that is going to be the biggest play in my view.
One has to keep in mind that it is the only pure play, aspirational play in the auto space and is just starting to perform. Stock Trading A2Z of Stock Market for Beginners: Stock Market Course For Beginners By - elearnmarkets, Financial Education by StockEdge View Program Stock Trading A2Z of Stock Trading - Online Stock Trading Course By - elearnmarkets, Financial Education by StockEdge View Program Stock Trading Heikin Ashi Trading Tactics: Master the Art of Trading By - Dinesh Nagpal, Full Time Trader, Ichimoku & Trading Psychology Expert View Program Stock Trading RSI Made Easy: RSI Trading Course By - Souradeep Dey, Equity and Commodity Trader, Trainer View Program Stock Trading Markets 102: Mastering Sentiment Indicators for Swing and Positional Trading By - Rohit Srivastava, Founder- Indiacharts.com View Program Stock Trading Mastering Options Selling: Advanced Strategies for Success By - CA Manish Singh, Chartered Accountant, Professional Equity and Derivative Trader View Program Stock Trading ROC Made Easy: Master Course for ROC Stock Indicator By - Souradeep Dey, Equity and Commodity Trader, Trainer View Program Stock Trading Derivative Analytics Made Easy By - Vivek Bajaj, Co Founder- Stockedge and Elearnmarkets View Program Stock Trading Technical Trading Made Easy: Online Certification Course By - Souradeep Dey, Equity and Commodity Trader, Trainer View Program Stock Trading Introduction to Technical Analysis & Candlestick Theory By - Dinesh Nagpal, Full Time Trader, Ichimoku & Trading Psychology Expert View Program Stock Trading Technical Analysis Demystified: A Complete Guide to Trading By - Kunal Patel, Options Trader, Instructor View Program Stock Trading Options Trading Made Easy: Options Trading Course By - Anirudh Saraf, Founder- Saraf A & Associates, Chartered Accountant View Program Stock Trading Candlesticks Made Easy: Candlestick Pattern Course By - elearnmarkets, Financial Education by StockEdge View Program Stock Trading Options Trading Course For Beginners By - Chetan Panchamia, Options Trader View Program Stock Trading Dow Theory Made Easy By - Vishal Mehta, Independent Systematic Trader View Program Stock Trading Market 103: Mastering Trends with RMI and Techno-Funda Insights By - Rohit Srivastava, Founder- Indiacharts.
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What is the outlook when it comes to the entire IT basket? How have you read into the quarterly earnings? What are some of the red flags? What are you expecting by way of commentary and quarterly earnings from the IT sector ? Varun Saboo: IT going forward is going to be completely dependent upon how the US is going to shape up. Luckily with Donald Trump winning and we have seen that, I could only see IT spending going up going forward. If you have to take a longer-term view, another 12 to 24 months, there is a clear-cut thought process where IT should do very well.
The only thing which can be a dampener in between is that yields have strengthened, so the entire thesis which was getting built around interest rate cuts could change. When it comes to valuations, the DCF-based valuations could provide some stopping to the upsides which could have been there in the space. I would believe that IT could consolidate from here.
I do not see any material upsides in the next 6 to 12 months. But fundamentally, I do not see any change. Things should remain strong over two to three years there.
Would there be any sectors that you would be a bit cautious on? Do you believe you have already seen quite a heady run up and hence would be a little bit cautious on the space? Varun Saboo: I do not think anything has run up recently. There has been a good correction in the last one, one-and-a-half months across sectors. But yes, I would not be excited about the consumption sector and overall about staples particularly.
You Might Also Like: Indian market to blindly follow global trend for a month or more; 5 sectors to bet on: Aman Chowhan For the last four-five years, people have tried to time rural pickup and then every time there has been a hope that things would start picking up. But one has to understand that these are saturated categories and that is the challenge here. I do not see anything changing going forward.
They are extremely well penetrated across the country. So, growth will never be too sharp. So, these will come off in their valuations.
Obviously, valuations have come off from 60, 65 times that they were trading at to now about 40, 45 times. I do not see a reason why it can expand from here. It can contract further down to 30, 35 times and that is where I see the challenge.
So, if consumption will not correct, it will consolidate. Otherwise, I am pretty bullish across sectors. The two themes which I really like are A) aspirational theme and the b)capex stories.
I see a sharp pickup in capex with continuity in government and the outlook around it also. (You can now subscribe to our ETMarkets WhatsApp channel ).
