tweet buster: Tweet Buster: Stocks that may recover quickly and the ones that may not

As the number of Covid cases in the second wave appears to have peaked out, the bulls are gradually returning to Dalal Street. The focus of the market is now turning towards recovery bets – stocks that will benefit the most as localised lockdowns ease and economic activities gather pace. In this edition of Tweet Buster, we filter the world of 240 characters to understand what market experts are saying about market recovery, the unlock theme, what to buy and what not to buy.

Recovery Bets

Sanjiv Bhasin of

said as economic activities reopen in June, the demand for LNG and PNG would be huge.

Look before you leap
Radhika Gupta, MD and CEO of Edelweiss Mutual Fund, says don’t be rushed into a buying decision, especially when you don’t understand the product. “Think, understand, and then decide. No investment opportunity runs away. And yes, this applies to mutual fund NFOs too!”

Reel life on D-Street

PMS fund manager Shyam Sekhar compared the current market situation to the movie Lagaan. “Kachra is the main hope. Bhuvan uses all his learnings to promote kachra. And everybody wants a fairy tale ending.”

Looking Through

Market veteran Basant Maheshwari said investors should not let their positions guide them. “If you have a position, all falls will look temporary; if you don’t have one, every rally will look manipulated. Don’t let your position guide you. See what’s happening and then take a position.”

For global investors

Kalpen Parekh of DSP Mutual Fund said international investing has just taken off this year as AUMs are up 5 times. “Like international vacations, I hope it’s not short lived. After years of high returns, there will be low returns and volatility too, Just like in our equity markets. Use fluctuations & invest slowly.”

Mistake, the best teacher

Parekh said his best investment, which fell by 80 per cent within a year, was in 1999. “Technology Fund IPO at ?10 that fell till ? 2. Learned that equity can lose money too very very early and very fast.”

Bearish calls

Financial advisor Sandip Sabharwal said the challenge for auto, AC, TV and consumer durable companies is very different from last year when production and consumption fell but consumption bounced back fast. “This year inventories have grown as factories continue to produce and consumption bounce back will be slow.”

Sabharwal remains bearish on Titan, saying that that management gives a very bullish outlook every quarter but the results disappoint. “The question is not about the business but the valuations. No stock is a buy at every price which is something many propagate.”