How to invest in the current market scenario? with Niveshaay smallcase

What to expect in the current market scenario?

In the current uncertain market conditions, predicting beyond a certain limit is difficult. Therefore, reacting is often preferable to predicting in the equity market. It’s prudent to stay ready to react rather than attempt to forecast. We are highly optimistic about India’s growth story and firmly believe it’s a long-term trend. Therefore, it’s crucial to remain consistent with the market.

What are the themes you believe can do well in future?

We believe favorable government policies, increased capital expenditure, indigenization, import substitution, and the “China Plus One” trend continue to influence sectors such as capital goods, defense, electronics, renewables, and textiles. We are also optimistic about the consumption sector due to its pivotal role alongside manufacturing in propelling growth within any nation.

We are bullish on a lot of other themes as well including Wealth Management, Recycling, Defence, Railways, Capital goods, Defence and Power transition etc.

Where should we invest our money? In large caps or small caps?

Emerging sectors typically starts on a small scale, resulting in all companies within these sectors being categorized as small or mid-caps. As a result, leaders in these segments also tend to be relatively small in size and high growth is also possible in these sectors. Therefore, our investment strategy predominantly revolves around small caps and mid caps, aiming to leverage on their growth potential opportunity.

We will still take into consideration investing in the large-cap sector if we find significant growth potential. For instance, the aviation sector in India exhibits high growth potential, with the leading player being a large-cap company. Our focus remains on identifying and investing in high-growth companies.

What is your rebalancing strategy?

Our dedicated research team consistently monitors the portfolio, tracking each company and its developments. We swiftly rebalance whenever there are significant shifts in fundamentals or market sentiment, or when new company-specific opportunities arise. Additionally , we  closely monitor any rebalance requirement following the quarterly results of our portfolio companies, ensuring that our investments are always aligned with the updated market conditions. Rest assured we’ll keep you informed via email and WhatsApp whenever a rebalancing occurs.

Disclosure:
NIVESHAAY INVESTMENT ADVISORS
Investment Advisor Registration Number : INA000017541 | BASL Membership ID : 1938 | Contact : +91 8200384930
Registered Office Address : Office no. 508, 5th floor, SNS Platina opposite Shrenik Residency, Near OM Sai Row house, Vesu, Surat, Gujarat,395007
Investments in securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL (in case of IAs) and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors. The securities quoted are for illustration only and are not recommendatory.