Sensex and Nifty have recently made all-time highs and the market is still in an uptrend. Many investors are worried about how long this market trend will last and whether there will be a sudden pullback. Sharemarket expert Sandeep Sabharwal believes that there is a need to stay away from IT stocks and Oil Marketing Companies (OMC) stocks in the stock market. Instead, he recommends investing in Tata Group’s hotel company Indian Hotels.
Why invest in Indian Hotels shares?
Sandeep Sabharwal says that India is now becoming a mainstream market, so the business of premium hotels will grow rapidly. Premium hotel room rates have gone up and demand has also increased. This stock can give double digit returns in the next two to three years. How fast the stock moves will depend on the company’s performance.
Sabharwal also said that he is not in favor of buying shares of IT companies at the moment. There is a possibility that there will be a turnaround in IT stocks and some stocks will start doing well. But there is also a risk.
In which stocks are you currently investing?
In the months of January and February, I had talked about buying shares of Tata Motors. Still it is worth buying the stock as Tata Motors will do well for the next few years. When a company’s fundamentals and performance improve, it doesn’t end in a quarter or two. But its a full circle.
Which midcap and smallcap stocks would you recommend in the current market?
The midcap stocks we already own are still in play. VA Tech Wabag stock looks strong. This stock has strengthened its position.
Why the advice to stay away from IT stocks?
IT stocks are overbought so the upside is limited now. The psychology of investors says that they do not want to buy IT stocks forever. So I mostly get questions for Infosys and TCS stocks. This is a risk for IT companies. That’s why I avoid buying IT companies.
