Investor Safir Anand says the equity market should be better in 2023
In 2022, the Indian equity market surpassed most of its global peers despite uncertainties due to rising interest rates and the geopolitical crisis between Russia and Ukraine. Whereas the benchmark equity indexes BSE Sensex and NSE Nifty gained nearly 8 per cent on a year-to-date basis until December 5, 2022, the BSE Midcap and Smallcap advanced 6 per cent and 2 per cent during the same period. The 30-share index Sensex and the 50-share index Nifty also rose to a new all-time high of 63583.07 and 18,887. Will the outperformance continue in the largecaps space in 2023? Business Today caught up with the well-known investor, Safir Anand to understand what investors should do to make money in the New Year. The Indian equity market reached a new all-time high before the year 2022. Safir Anand said that the market should be better placed in 2023, especially if the global supply chain and logistics are sorted out and inflation is showing signs of easing rather than stress. The US Fed will have an impact on the system and India should show a sweet capex uptick. I think there will be a 15 per cent rally in 2023 unless we have a black swan.
BT: Midcaps and smallcaps have underperformed the benchmark equity indices in the current calendar year. Safir Anand said that the mid and small caps have done well over time and there is usually a big rally in mid and small caps for 15 of the last 19 years. I read that the reclassification of large into midcaps or small into midcaps brings a rally but not always mid to small. Some of the excellent companies in both of these have braved the current inflation and supply chain turbulence. Where do you think the next set of leaders will come from over the next 12 -- 36 months? Safir Anand: Banking is in a sweet spot on the back of declining non-performing assets NPA and an imminent capex cycle. A bunch of manufacturing players that have a strong edge in technology transfer or making India a substitute hub for China or Taiwan or similar can benefit from this. Don t forget that most of them are highly efficient with capital. Some have announced strong capex.
I like the hospital sector, which is cleaning up. I prefer niche small and mid-sizeds, especially in areas like logistics where there is a huge potential and railways which are seeing a huge investment.
Even beaten down infrastructure companies are looking healthier and do not have their historical baggage of not getting paid. The government is serious about the infrastructure sector and has changed a lot for the good.
How does your financial portfolio look at the end of 2022? What is the composition of equity, debt, real estate, and others?
Safir Anand said that my portfolio is almost in equities and I intend to keep it that way for now.
Which stocks have given you a handsome return from the Covid lows in 2020 to an all-time high in 2022? Safir Anand: I love reading and believe that it empowers you with facts or to search for facts. I like to analyse facts over the noise. ICICI Bank, State Bank of India, RACL, Lumax and Fiem Industries, among others, have given me handsome returns since Covid lows.
Safir Anand is not much of an IPO investor. If you get lucky, the allocation is small. If the company is good and worthy, I prefer to invest in it post listing.