Sunil Singhania, founder of Abbakkus Asset Management, said from a period of doom and scare, which we were in March and April, the year has ended up pretty optimistically.

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“As we move forward, there are apprehensions because of the rapid rise in the stock prices. On a one year basis we are still maybe 15 percent which is not very big rise. As we move forward there is a lot of tailwinds also quite visible. Biggest tailwind has been all the money printing which has been done globally, that liquidity is going to not only drive flows into the market but also aids the businesses.”

While giving a word of caution, Singhania said, “Money making has become too easy last 3-4 months, and 2021 to that extent might be little different where you will have to work to meet that returns.”

Talking about themes and sectors, Singhania said, “I still like the digital theme, I am a traditional investor and normally I don’t like very high PE companies, but this is a theme which is going to last for a long period of time.”

“We still like the IT space and spending on technology is increasing globally and the topline and bottom-line performance of these companies will surprise.”

“On the metal front, you can’t take a five-year view but there are some companies with an integrated model which is trusted upon earlier which can be looked at from a couple of years point of view.”

“Pharma is going to be a sector which cannot be ignored. I would prefer good pharma companies at 20-25 PE rather than buy FMCG companies at 50-60 PE.”

Watch this interview for more.

(Edited by : Bivekananda Biswas)

First Published:Jan 1, 2021 5:06 PM IST