“Fortunately, infra spend has also picked up for the last six months, particularly the government spends which we saw. We have had the boost from RBI which came in in terms of a solid rate cut and then we saw a very good CRR cut also, which helps to infuse a lot of liquidity into the system,” says Varun Saboo, Anand Rathi Shares. Give us your sense on what you are making of the market? Today clearly that uptick we had seen yesterday was very short-lived and that joy has already been wiped off the street. But what are you making of the trading session for the of the week and in the short term as well, any chances of an up move from here given that we have once again seen a little bit of a consolidation today?Varun Saboo: Honestly, I can only say that I see these corrections as an opportunity to buy. One thing is clear, if you see that, I mean you are seeing peak of negative noise being there. Iran-Israel peak of noise is there, still you are not seeing crude react beyond a point, also our markets for that matter. I think that any correction of this sort is just giving an opportunity to add into a country which is the fastest growing in the world. The consumption pattern if you see has not shifted at all. We are still seeing a discretionary spends being at peak. Auto sales going very strong. Across whatever parameters we see, the economy is doing very well. Fortunately, infra spend has also picked up for the last six months, particularly the government spends which we saw. We have had the boost from RBI which came in in terms of a solid rate cut and then we saw a very good CRR cut also, which helps to infuse a lot of liquidity into the system.
So, from all perspectives India is looking like a solid place to invest into. I do not see any reason why we need to be worried over here. Any corrections I would strongly suggest that one should be a buyer into these markets.
Which sectors do you believe will participate the most and which sectors do you believe have that valuation comfort?Varun Saboo: See, one thing is clear that we are into a situation where consumption is going very strong, so your discretionary spend is where we are very bullish on. Secondly, we are very positive on any interest rate sensitive for that matter. We are clearly in a downward interest rate cycle. Despite everything inflation is remaining under control. I do not see any reason why we have to be worried on any front. The key ideas which I like currently would be one trend which is one of the best proxies to buy in terms of a strong spending pattern on the grassroot level. I think rural is also picking up materially, so tier II, tier III is a place where you have to be in. Going to be very positive on DMart as well which has a solid asset base, the kind of stores that they have set up, the business model they have set up is brilliant, so that plays out to be very well as well. I have been speaking about Escorts being one of our key ideas. It is yet to play as in the theme, but I think Escorts is going to be the stock of the year in my view. So, these are key three picks which I would really vouch for over here.
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