Porinju\, Safir and 4 other top value investors tell you where is money in this market

• The way forward: There is a feeling of being left out among investors amid the ongoing stocks rally. So, there will be buyers at every fall. The country has crossed the worst phase of Covid-19 and things will probably get better from here on.

• What to buy: There are sectors which have been impacted less by the Covid disruption. They include agri-related businesses, pharmaceuticals and FMCG. Low or mid-income housing should also pick up once people become sure of economic stability. Personal mobility like scooters, bikes and small cars should do well too. Some beaten-down sectors like cement and infrastructure can also give decent returns to long-term investors.

• Where to invest: Select banks and pharmacetutical players will continue to rally.

• The way forward: Liquidity-driven rallies are fast and furious and one cannot fight them. In these types of rallies, correction comes when no one imagines it. It usually comes when the guards are lowered. Therefore, predicting the endgame is a futile exercise. It is almost impossible.

• Where to invest: Auto ancillaries, automobile, rural economy-focused companies, cement, infrastructure, metals and companies that can replace imports.

• The way forward: Most of company managements highlighted that the demand has been recovering every passing month and rampup of businesses is happening better than expected. Thus, the market is enthused. However, a correction after such the sharp rally is very likely, but there will be buying interest at lower levels and hence any sharp correction will get bought into. Chemicals, API-focused pharma are some of the sectors where the valuations have reached frenzied zone. There may be price and/or time correction in these spaces.

• Where to invest: Non-banking financial companies and housing finance players with strong balance sheets and sectors still reeling under the Covid impact such as hotels or entertainment will do well when normalcy returns.

• The way forward: The pumping of huge liquidity by global central banks and arrival of a new set of traders, who started investing during the lockdown for the first time, have supported the market during the past five months. Besides, with interest rates bought close to zero or negative worldwide, even conservative savers across the spectrum is chasing riskier assets in search of returns. This rally is not sustained by fundamentals, so currently the market looks overvalued and one needs to be cautious.

• Where to invest: Sectors like real estate, metal and media are looking attractive. The realty space has been down in the dumps for last so many years. There is a big consolidation happening and home loan rates are reaching historic lows of close to 6 per cent. This affordability along with interest subvention schemes and tax breaks are very appealing for first-time buyers to purchase homes. The ongoing momentum in the metal space seems sustainable given the huge infrastructure spending being planned in China, the US and Europe. Many metal stocks are also trading below book values and that provides an opportunity for gains. Media players, including print and radio, are trading at cheaper valuations, and it seems the market sees them as a sunset industry with most advertisements moving to digital.

• The way forward: The ongoing recovery in midcaps and smallcap space should continue for the next 2-3 years. However, Nifty may not go up that much now.