“If you stay away till the dust settles, you will probably be staying away for the entire next 100 years. There is no dust settling in the stock market. It doesn’t happen like that, there will always be some sort of issue or the other,” said Saurabh Mukherjea, founder of Marcellus Investment Managers.

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“The successful way to make money in India over the last 12 months, over the last 10-20 years has been buy high quality companies with clean corporate governance, strong cashflows, good balancesheet, strong competitive advantages, etc., and if you do that then the Indian stock market rewards you amply and that remains the way forward, whether there are issues in Middle-East or back home in India, it seldom matter as long as you invest sensibly,” said Mukherjea in an interview CNBC-TV18.

“Invest sensibly in great companies with clean governance and good accounts, you will make decent sums of money whether it is today or whether it is in a hypothetical future three-four months out after the budget,” said Mukherjea.

When asked about his views on Bajaj Finance, he said, “It is a large holding in our clients’ portfolio. The non-banking financial companies (NBFCs) industry’s balancesheet is actually shrinking. If you see the data that the Reserve Bank of India (RBI) is publishing, it shows that the last four-five months, the balancesheet of the industry is shrunk. So in that context 35 percent growth is remarkable. It is tremendous to see 35 percent growth when the industrial balancesheet is going backwards because most NBFCs barring three-four, have no access to money market funding and therefore the industry is in deep crisis.”

“Our mantra has been buy great companies, which can continue compounding whether the industry is booming or otherwise. In a shrinking industry Bajaj Finance is the big consolidator. My reckoning is, another year out, we will have three-four large NBFCs which will survive in our country. This company will survive, it will thrive and our view therefore is our clients’ position in this should be held right through this crisis,” he further mentioned.

When asked about currency trajectory, he said, “It is a matter of time before the rupee goes to mid-70s to the dollar and if you want to play on currency weakness, naturally IT and to some extent pharmaceutical space as well will give you a play on the rupee weakness,” he noted.

First Published:Jan 6, 2020 3:20 PM IST