Monsoon will add momentum to market rally: Porinju Veliyath, Equity Intelligence

In a chat with ET Now, Porinju Veliyath, Equity Intelligence, says don't wait for monsoon to buy stocks. If you want to do value investing, when monsoon is bad and market is down. Edited excerpts

ET Now: How do you see the markets now that it has been confirmed that the south-westerly monsoons have finally hit Kerala?We want to focus on how is this going to benefit the markets because clearly that is one trigger that most of the experts are waiting for.

Porinju Veliyath: Monsoons being normal is normal, it is not something extraordinary. But investors want a trigger every week or every month to stay invested. In fact, you should buy good stocks when the monsoon is bad and the market is depressed because next time when the monsoon comes and the market is buoyant, the stocks will get expensive. This is called value investing.

As an economy, we have a long way to go and definitely monsoon will trigger an economic boost though temporarily. We are getting set for a good stocks markets and the monsoon can definitely add momentum to the rally.

The political management of the economy is in the right direction after a very long time. So I am definitely very bullish on the market.

Investors need not really give too much importance these like – Brexit or China slowdown or monsoon deficit. Look at the big picture.

We have a long way to go and we are in the right direction as far as the long-term management of the economy is concerned. We have to grow and the investing community is going to make big money going forward.