With what is happening around the dollar index, how do you trade that in the equity markets and what would be the themes? We are back to almost the high level that we had seen about two-three months back and we have a very important quarterly earning season around the corner, where because of the dynamics around the input cost and interest rate flows, it is not going to be an easy quarter for many of the companies. The last time it was 100 on our screen was on 18th May 2020. The other newsmaker of the day is going to turn out to be the dollar index which is now flirting with 100.
Though there is an appetite we should be a little more selective about what we are getting into from a trading perspective or even from a long-term perspective. Zomato also had its own sort of challenges given the kind of allocation of capital that they have done in some investments they have announced. Maybe to some extent, Policybazaar and some of the other platform companies, maybe an IRCTC could be the one to look at, but I would not go all out in names.Īlso, let us say you have Paytm where I do not think there is a case for a significant up move given the kind of challenges that we have. My only point is that rather than buying everything which is down 40-50%, it will be good to filter out some names where the business model looks a little better, the management pedigree is better and play for some sort of a pop or you can also look for a two-three-year kind of investment in some of the names. So there is definitely some buying interest. The risk appetite is back and people like to look at some of the beaten down names and as we all know from the highs, these stocks were down about 40-50% or maybe even more in some cases. Even Paytm has managed a 19% recovery and the likes of RateGain, CarTrade have also recovered. From 52-week lows, Nykaa is up about 49%, Policybazaar is higher by 34%. What about the new-age companies? You are talking about the value stocks coming back, electricity stocks coming back, but so have the new-age companies. These are the best stocks to have –particularly Tata Power, NTPC and Power Grid. We like that space and we do think that despite the kind of runup that we have seen in some names, they do offer some more upside, particularly for retail investors who are looking for a 10-15% move. Also, it is a very small sector in the overall scheme of things and the allocation at the institution level would be very small. Some of these utility companies, particularly Tata Power, NTPC and Power Grid could be beneficiaries of that, which is why we are seeing this move.
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