Veteran investor Porinju Veliyath believes that the current global economic environment provides an opportunity for investors to “cherry-pick stocks” over the next few days.
What Happened? Famously called the ‘Czar of small-cap stocks,' Veliyath believes that factors such as “year-end selling, global weakness & Adani, SVB sentiments, etc.” currently offer a great chance for investors to buy quality stocks that have consistently performed better in the past.
Veliyath, whose also the founder and CEO of Equity Intelligence India took to Twitter on Tuesday to motivate his followers to invest even when the climate doesn’t seem great. “India will shine in the emerging multi-polar geopolitics and amid the deteriorating fiscal outlook of the US and Europe,” stated Veliyath.
Why It Matters: Bank stocks across the United States and Europe saw a plunge on Monday after startup-focused lender SVB Financial Group on March 10 became the largest bank to fail since the 2008 financial crisis. Signature Bank, subsequently became the second US bank to collapse over the weekend.
Closer home, the sentiment around the Adani Group appears to be changing following a tough period. As part of their debt pre-payment plan, the Adani family has fully paid margin-linked share-backed financing of $2.15 billion (₹17,698 crore) before the March-end deadline. Besides, the promoters have also prepaid a $500 million (₹4,115 crore) facility taken for Ambuja acquisition financing.
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The entire prepayment program – which has been completed within 6 weeks- paired with backing from foreign investors like GQG Partners seems to have boosted investor confidence.
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