Expect market to correct going forward: Gul Tekchandani

In a chat with ET Now, Gul Tekchandani, investment advisor, shares his market outlook. Excerpts:

ET Now: What was your last big acquisition in the portfolio that you manage?

Gul Tekchandani: I added a bit of Tech Mahindra because they had fallen off the bed and we expect reasonable numbers, going forward. It may not move in a hurry, but over the next six to nine months, this is a good price to get in.

ET Now: In case of macros, looking at the latest batch of data which has come for IIP, for inflation, we are nowhere close to a bottom. Your comments?

Gul Tekchandani: In that sense, a look at the market history will probably give you the sense that nothing is happening, but markets always move at least 6 to 10 months ahead. Since, markets have seen the worst, the bad is behind us. If the monsoon only supports us and we end up with a decisive government at the centre, then the mood swing is humongous.

Yes, the market will correct at some point in time going forward. I am of the opinion that even if you see a run up, there will be a correction and a healthy one at that. It may happen, let us say, three-five months after the new government gets settled in its place. Hopefully, if the monsoon is good, then the correction may not be a deep one, but some of it will have to happen. However, be that as it may, you will have to keep buying small companies and large companies based on the next 12 months or maybe the next one-and-a-half years’ perspective.

When you look at the macros today, you are looking in the rear view and you have to dial up and see what will happen going forward. Interest rates hopefully in the next eight or nine months might come down and that is quite visible in the way the tax-free bond prices have been moving. People are trying to predict what is going to happen to interest rates.