Vijay Kedia: Tweet Buster: Kedia on a song! And why you must avoid the 11:59 gang

NEW DELHI: On the back of continued overseas inflows and positive global cues, last Monday’s crash proved to be shallow, as the bulls continued to buy every dip on Dalal Street. During the holiday-truncated week, Sensex gained a nominal 12 points, but managed a weekly gain for eight consecutive weeks, the longest such upside since January 2018.

Going by the Street mood, worries over the new strain of coronavirus are being offset by vaccine hope and Brexit deal. All eyes, however, remain on overseas inflows.

In today’s edition of Tweet Buster, top D-Street mavens share their learnings from the tumultuous year of 2020, share market outlook and money-minting ideas for the New Year.

Money-making formula of 2020
Kalpen Parekh, President of DSP Investment Managers, summarised learnings from 2020 in three sentences. “Person of the Year: Who kept his calm in March. Process of the Year: SIP that didn’t give up. Formula of the Year: Asset allocation that stuck to its rules of buy low and sell high,” he said.

Compounding magic
Radhika Gupta, CEO of Edelweiss Mutual Fund, explained the power of compounding by giving the example of how investing early in one’s career can give astounding returns at retirement.

On a song
Mumbai-based value investor Vijay Kedia released his ninth song on the current sentiment in the stock market. Out on his YouTube channel, the song is written and sung by the ace investor himself.

11:59 gang
After the Monday mayhem on Dalal Street, Ravi Dharamshi of ValueQuest Investment Advisors said bull market corrections are sharp, swift and short. They are essentially designed to remove the weak, unconvinced and 11:59 gang. Explaining the term “11:59 gang”, he said they are the ones who believe that the party ends at midnight. “It is 11:59 currently. One needs to rush out of the door. Always looking for a top. Very counterproductive. Someday they will be right, but they will be wrong 10 times before that,” he said.

Multibagger theme
Value investor Arun Mukherjee gave out a list of sectors where one can spot future multibaggers. “Future multibaggers are going to come from companies that solve climate change, or precision medicine to cure cancer. Water purification and anything related to organic or anything where there is a scope of value added products should do great too. I am also high on the API and manufacturing theme,” he said.

Midcaps in bubble zone?
Independent market expert Sandip Sabharwal is among those clearly worried about expensive valuations in the ongoing bull run. “Many midcap-focused mutual fund schemes hold obnoxiously valued stocks. Since investors have been putting in more money into them, they buy the same stocks even when there is no valuation argument. Good time to book out of these,” he said.

Is Titan overvalued?
Sabharwal is of the opinion that the bluechip stock Titan, a favourite of ‘Big Bull’ Rakesh Jhunjhunwala, is one of the most overvalued stocks in the market. “The management is always excessively bullish but the delivery is usually lacking. I like the company though,” he said.