Tweet Buster: Shankar Sharma’s ‘reverse compounders’, Kedia’s ‘hot pan’ & Sabharwal’s ‘value trap’ alert

NEW DELHI: Benchmark equity indices ended in the green for the second week straight, led by optimism of phased reopening of a few economies, possible drug candidate for the coronavirus and RBI’s liquidity booster at home. There are also hopes that the Modi government may soon come out with another stimulus package for the distressed industries.

As the earnings season kicks off, investors will now be keenly eyeing company commentaries for further cues Covid-19 impact on businesses.

And that’s the talk of the town among the Dalal Street’s Twitteretti. Here’s a sampling of what’s trending this weekend.


Economic Outlook
The coronavirus crisis has severely impacted the Indian economy, with some brokerages are saying India might see 0% economic growth in Calendar 2020. And independent market expert Sandip Sabharwal believes a 0% growth outlook is still too optimistic.

Ace market investor Vijay Kedia compares the current economic situation with a hot pan and liquidity to water, saying no matter how much water you keep putting on the pan, it would soak it up.

Investment Tips
Sabharwal advised investors to stay away from smaller banks, calling them value traps. “People should own just large banks and large NBFCs,” he said.

iThought co-founder Shyam Sekhar said the philosophy of being bullish when others are bearish; turning bearish when everyone is bullish can work only in liquid stocks. He said buying or selling decent quantities in illiquid stocks is never easy.

Soumya Malani, a young independent investor based in Kolkata, advised investors against putting a major part of the money of your portfolio in one stock. It is always better to follow a disciplined approach to investing, says he.

Silver Lining
Sabharwal said post-coronavirus, we can make ‘Make In India’ successful by taking manufacturing out of China.

Reverse Compounders
Market veteran Shankar Sharma has floated an interesting concept: Reverse Compounders. Take a look at what he means.