The carnage triggered by coronavirus has finally made expensive Indian stocks slightly cheaper, a pain point many investors were repeatedly pointing out. So while some are shedding stocks like they just realised they were holding dirt, not diamonds, others are making the most of the fall. Opportunistic buyers including Sailesh Raj Bhan, deputy CIO, Nippon India Mutual Fund are embracing volatility. Confident about seeing a fresh set of winners once market recovers, Bhan is building a hybrid portfolio through a combination of growth and value stocks. In this interview with Outlook Business, he reveals where he is seeing value and shares his contrarian bets.
Do you believe volatility has peaked or do you see more pain ahead?
The near-term impact of this development (coronavirus) has created a lot of uncertainty, which has led to increased volatility. There are concerns about how businesses will operate in the next few months and foreign investors have been selling. Meanwhile, global leverage trades or ETFs, are playing a huge role in the selloff. Investors are reducing exposure to emerging markets on the back of risk aversion. The volatility might continue for some time. But we see volatility as a friend of a prepared investor rather than being worried about it. The minute everyone is clear about how the world will look in two to three months, the prices will re-adjust.
You don’t want to be left behind. Do you?
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