Atul Suri, CEO of Marathon Trends Advisory PVT Ltd, Portfolio Management Services Registered (PMS), believe that Auto, Auto Supporting, Infrastructure and Real Estate sector can provide positive surprises once the market is stable.
“I think market correction is a very interesting phase and I strongly believe in the fact that ‘stocks that fall less in the falling market are the next market leader’ and that applies to these sectors as well,” Suri said in an interview with CNBC TV18 on June 21.
Among the individual sectors, he sees the strong performance of the car sector. This sector performs poorly, not loved but has performed very well and the stock has survived in the correction that was witnessed for the past six to nine months.
“In this scenario, we have a double cocktail that has dropped less and they have lacking ownership,” Suri said. He believes that ownership under ownership is a very important factor because when and when the sector rises and people do not have it in their portfolio, institutional allocation must follow up and increase ownership because that is the way they will be able to match the benchmarks. Apart from Auto Inti players like Tata Motors, Ashok Leyland, there are many automatic players and related car players where he sees many actions and excitement. For example, a ball bearing that has very few producers / companies but the performance of these shares is very good, especially when the market falls. In fact, most of these stocks make the lifetime of the highest life.
“So most of the drama associated with the car sees a lot of actions that make me feel that every time the market is stable, the sector that is less loved, less closed may really be shocking on the positive side because in the end is a surprise that moves the market,” said Suri.
He hopes that the infrastructure and real estate sectors will also do it well. According to him, “Infra in particular is very similar to the car sector”. Infrared stock has performed poorly for more than a decade. In 2008 they had supported but most of them were still trading 90 percent below that level. “This is again a type of space that is less loved, less owned and completely ignored”.
However, in the ongoing correction there are many infrared stocks / techniques that have survived very well. “This gives confidence & optimism about the economy as a whole because both infra and cars are very close to the economy as a whole and every time these things begin to move together, we see the underlying taking and that is what was built in optimism,” he said while while radiate trust in the Indian economy.
The real estate sector also has the same similarity with cars and infra and apart from the top names in the real sector, there are many related string players and both who have survived quite well and can make a surprise in the future.There has been talks about the global market and the relative performance of India. “All better performance comes because of how we do the economy and it gives me confidence that the underlying economy has greater strength and as a stable thing, these sectors can appear very well and surprise us all” , said Suri in conclusions.