Buy stocks of companies with good earnings growth, positive guidance: Sanjay Dutt

In a chat with ET Now, Sanjay Dutt, Director, Quantum Securities, shares his view on whether one should keep on accumulating equities.

ET Now: Of late, we have seen that good results such from companies such as Jubilant, Eicher Motors have gotten rewarded.On the other hand, even if the company is marquee, the bad numbers have been punished. Lupin is the prime example. Are you buying into the good results despite your view that the market is looking toppish?

Sanjay Dutt: Absolutely. In fact, I have always maintained this in the last few months. I am sector agnostic and completely opportunistic at this point of time.

Wherever I see good numbers, compelling valuations, healthy balance sheets, and relatively clean managements in terms of corporate governance and corporate hygiene, I do not have second thoughts.

When the market collapses 10 per cent, it generates opportunities to buy stocks. During such periods, stocks drop by 20 per cent to 30 per cent.

So, it is not that I am going to stay away from the market. Yes there will be collateral damage if I am expecting the market to come off by may be 5 per cent. In such a case, the stock that I buy today may come off by 10 per cent. That said, I will keep room to buy more.

This is an opportunity to buy the good stocks and the ones that delivered good numbers and are reasonably confident of the outlook ahead..