Use corrections to build positions at cheaper levels; Don’t get fomo about IPOs: Sunil Singhania

Despite the global uncertainties and new tariff shocks of the US, Sunil Singhania, founder of Abakkus Asset Manager LLP, remains optimistic about India’s growth order, where investors encourage current corrections as an opportunity to build positions.

Singhania maintained his long-standing bottom-up investment approach, but emphasized patience and discipline. “Opportunities are enough in India, but investors must be realistic and selective. If these corrections you can buy what you wanted 5-15% cheaper,” he said.

Singhania now spoke with ET, admitted that in recent months it had been ‘jerky’ with delaying growth, business reserve and heavy foreign outflows. Since January India is preparing for the tariff pressure, but never expected the US to impose a rate of 25%. And now there is also an extra punitive rate of 25%. The surprise extra 25% American rate for Indian exports, he said, added the turbulence. “It is very unnatural to expect India to pay 50%, while countries with higher deficits are confronted with lower rates. We hope that this will resolve quickly, but yes, this has come a negative surprise,” he noticed.

If the rates illuminate, the market can return sharply

Yet he pointed out that the macro -economic background of India remains resilient. With the government that rolls out the lighting of income tax, probably, and the RBI that penetrates almost RS 10 Lakh Crore into liquidity, in addition to strong monsoons and stable inflation, are domestic disorders. “If rates we believe that they believe that they have a chance of 80-90%, the markets can come back sharply. Much of the bad news has already been priced,” he said.

Regarding the strategy, Singhania said that they say investors that the new rate has influenced the markets, but most negative news has already been priced. Everything else is in line and the government reinforces the efforts to stimulate the domestic economy. He insisted not to wait on the sidelines at investors. “This is a good time to build positions,” he said, warning that the return expectations should be moderated. After the extraordinary CAGR returns of 30-40% of 2020-2024, investors must prepare for the center of the returns for the middle.

Be careful in this IPO racing

Singhania hit a cautious tone on the IPO Rush. “I have never seen so many companies that IPO’s plans as now. Too much paper touches the market, with promoters that load great efforts. Investors should not be dragged by FOMO. Fundamentals are now much more,” he warned. He added. “FIIs have not placed any net dollars in India in five years. If they return, delivery will not be a problem and the ratings can remain reasonable,” he said.

Singhania maintained his long-standing bottom-up investment approach, but emphasized patience and discipline. “Opportunities are enough in India, but investors must be realistic and selective. If these corrections you can buy what you wanted 5-15% cheaper,” he said.