shankar sharma: There is no permanent love in equity markets, learn

Talk about autos. On one side, there is a re-rating in Tata Motors and a de-rating in . The re-rating in Tata Motors is because they have got an EV investor; the de-rating in Hero Electric and Maruti is because they are not serious about the EV business. What should one do?

I do not own any auto. There are just easier ways to make money in this market rather than buying the old line auto companies and we do not even know whether the EV story in India is going to pan out the way people expect it to. So there are so many imponderables out there that I am better off focussing on non-auto plays rather than going back again to the comfort of a Maruti.

We loved Maruti for decades, right from the time it listed in 2008. But one needs to move on. There is nothing called permanent love in equity markets. So you move on; at least I have moved on and I think unless you are an institutional fund manager, as a normal retail investor do you have any business going and buying these old line auto companies?

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What are you excited about in the market? Since there is nothing called permanent in the market, it is all about finding opportunity. Apart from liquor stocks which you have talked about in the past, where else do you see value or potential of return?
Midcap and smallcap IT is great. They are innovative companies. They are doing very well. Again, nothing damages that business because whether there is Covid or Cocid 2.0 or Covid 3.0, either way, those guys are benefiting and have benefited massively. That has been a good bet for us in the last 15-18 months and I continue to like that space. There are many segments opening up within the overall tech space in India. That space is buzzing and I continue to remain very excited about that space.

What could be the FAANG acronym for India for the next couple of years?
I think we need to see listings. India traditionally has been deficient in the tech space. We have had IT services but not so much tech. But a lot of new companies are hitting the markets and will continue hitting the markets and some of them will really become very innovative companies. I do not have the acronym pack just yet but hopefully in the next few months, I will have a few for you for sure.

There are three, four new tech companies – a combination of Zomato, Nykaa, PolicyBazaar and maybe even more when companies go public. Just sit on them for the next couple of years and they can create wealth because markets are underestimating the true potential of what some of these businesses can achieve. Who would have thought what a DMart or a Bajaj Finance could achieve but they have…