“Till all the bears throw in the towel, the market is not going to stop now whether it’s (Nifty) 18,800, 19,000 or 19,500,” said IIFL Securities director Sanjiv Bhasin in a conversation with CNBC-TV18. He believes that markets are on a strong footing at least till June 15. Bhasin, who has been bullish on the Indian markets for some time now, attributed the market strength to overall good earnings results and an improved macroeconomic backdrop.
When asked whether he expects the market to continue its bull run and push the Nifty to 20,000 levels, or see a shakeout in the middle of June, Bhasin said that he does see a sharper-than-expected correction in the second half of June, which will be a good time to exit some positions.
However, he reiterated his belief of hitting 21,000 on the index anytime between July and September.
Wealth creation mantra
In this bull run, Bhasin advises against trying to time the market. “Only two people can time the market,” he said. “One is God and the other is a fool.” That being said, staying invested is the only “mantra” in India to create wealth. He pointed out that the question of when you enter or exit the market is only for investors with a short-term view. Ownership is the key to wealth creation, and the under-ownership of stocks is the only pessimism that Bhasin is noticing in this strong market.
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To explain the importance of having faith in the Indian market, he gave the example of gold. Gold, which has a strong emotional value in India, is around Rs 61,000 today because Indians buy gold and don’t part with it easily. This is what drives the market for gold and ensures the price keeps appreciating.
Bhasin named GMR Airports as one of the stocks that he is bullish on in this market environment, given its debt reduction efforts, the growing international travel in Hyderabad, increasing footfall in Delhi airport, and the scope of additional revenue channels in airports, among others.
“So you see GMR is a no-brainer at 40, I have a target of 65,” he affirmed, saying that capex in Delhi is likely to start to churn returns in September. “Entry of the middle class is rising superbly,” he added, further affirming his bullishness on the stock.
