Tweet Buster: Bakshi says debt funds are new shadow banks; Sabharwal says learn from volatility

NEW DELHI: The stock market wrestled with volatility all through this past week, has as it meandered through the highs and lows each day only to end 0.20 per cent lower for the week. The reasons are not far to seek: election results are due in less than a month and the earnings season is on in full swing.

Value investor Safir Anand summed up the market situation well in a tweet that he put out a few days back:



Commenting on the volatility, independent adviser Sandip Sabharwal handed out this piece of advice: Don't fear the volatility, learn to ride it.


But if you see no signs that trouble for the market, Sandip Sabharwal lists out three:

> Crude shock

> Fed up?

> Dollar

Fundoo Professor Sanjay Bakshi raised the flag on an issue haunting the mutual fund mart past few weeks. He said debt funds may have become India’s new ‘shadow banks’.


Report card
Some eight Nifty companies came out with March quarter results this past week and most of the results were in line with expectations.

Sabharwal said the uninspiring YES Bank earnings showed why the stock weakened a few days before the numbers were out and called it a case of insider trading. He said a sharp underperformance in the bank’s net interest income was more concerning than rising provisions.


Taking a cue from Ultratech Cement’s earnings, Sabharwal recommended buying stocks from this sector on decline.


On a lighter note:
Safir Anand points out that there is a competition going on between the stocks on RCom and Unitech. Here's how!


Lastly, Shankar Sharma thinks the "khichdi" government might just be a good idea for India. Do you agree?