Renowned equity investor Vijay Kedia encouraged shops to take a long-term perspective rather than trying to earn quick money in the market. If you (a small investor) don't comprehend, don't buy, said Kedia, MD of Kedia Securities to a credible source on Wednesday. When asked if he had done any 'shopping' last month, the market veteran replied, "I did not buy anything. I've been sitting quietly, serving as a cheerleader.
"There was froth in the market, which is now being corrected. And the correction can continue. Kedia predicted that the market's earlier exuberance will subside. The market analyst also noted that mid- and small-cap stocks continue to look costly.
In answer to a question about public sector undertaking (PSU) equities, Kedia predicted that the counters may fall further. Overall, the India development story is still intact, and infrastructure stocks should be evaluated as we move forward, he said.
Kedia is noted for identifying high-quality equities early. When I last looked, his share portfolio was worth well more than Rs 1,600 crore. His portfolio includes stocks such as Tejas Networks, Atul Auto, Elecon Engineering, Neuland Laboratories, Sudarshan Chemicals, Mahindra Holidays & Resorts, Vaibhav Global, Patel Engineering, Global Vectra Helicorp, and Om Infra, among others.
Meanwhile, domestic benchmarks rebounded sharply today, with advances across all sectors. The 30-share BSE Sensex pack rose 2,303 points, or 3.20 percent, to 74,382, while the broader NSE Nifty index advanced 736 points, or 3.36 percent, to 22,620. The previous session saw both the BSE and the NSE tumble by roughly 6%.
