Try to hedge your money in this volatile money instead of trying to profit from the market. Invest once the clouds of global tensions have passed and the market offers an opportunity to invest, says Anil Singhvi, Editor-in-Chief, Zee Business. During a candid radio podcast, “Kadak Currency”, with RJ Salil Acharya, Radio City, 91.1 FM, Mumbai, Mr Singhvi said investors should stay away from IT and banking stocks in the event of a war between Russia and Ukraine, because the war will have a negative impact on these sectors.
RJ Salil started the “Kadak Currency” podcast talking about the Russian-Ukrainian issue and the possibility of explosions and said the issue of war is beyond natural issues. So what do you think and what are we doing to have short term problems? What Mr Singhvi said is don’t fight and those who have to fight will never say I will see you, in fact they come straight and fight straight. So they show each other eyes for 15-20 days. If seen deeply, they show each other’s eyes for many months. Now Ukraine cannot do much because it is small and weak compared to Russia. Russia must show greatness and America must jump in the middle. So these little things will go on and on. First of all it’s less likely that there will be a full war if this happens it will be for a day or two and I would say whatever has to happen, should happen and even if it doesn’t have to happen, so it needs to be specified. So I think the full situation will become clear in the next two weeks. It is possible that there will be no war because Ukraine is sending signs that it does not want war and is also ready to back down. So Russia’s job is done, allowing Mr. Putin to congratulate himself that I made this happen, while America would also like to see the two not fight, which means she can proudly say that our interference saved the two from the fight, so we are the most powerful nation. So, I think going without a war is in favor of all three, so talks and threats will get them all right and in a week or 10 days things will be back to normal.
WATCH | Click Zee Business Live TV Streaming below:
In his next question, RJ Salil said that upward revisions to interest rates on home loans almost everywhere have ended happy or discounted days for individuals and interest on home loans has gone from 6 .40% to 6.90% and 7.35%. Do you think this increase in mortgage rates will be a deterrent or will it encourage people to buy? Mr Singhvi said that interest rates are no longer at life lows and need to rise more from here and there are signs of interest rates rising and they will rise a bit more. So I think interest rates are good for those who have to buy and they should buy because you can’t always buy everything low and sell everything high. The situation is the same in the case of home loans. However, the rates are near the bottom and are more suitable for those for whom it is necessary to buy a house. Generally, people think that if there is an increase in mortgage rates, the demand for real estate will decrease or prices will go down. It won’t happen so fast because you can only raise prices when the demand is strong and it is quite strong right now. So I think those who want to buy a house for consumption purposes have a golden chance because the rates are good and you get good properties in ready conditions so you have to buy them.
Continuing the podcast, “Kadak Currency”, RJ Salil talked about the Q3FY22 results of public sector banks, which are strong and their books are also quite strong. He said, in our conversation two years ago, we said that banks are the institution on which all lending and borrowing can occur. So, is India’s banking situation now very strong due to which liquidity will be very high in the country? Mr. Singhvi in his response said the companies are showing strong results. The economy is clearly giving signals of a slight rise and you can directly call the banks a barometer. If the economy is doing well, only the banks can do well, if the economy is back, the results for the banks cannot be good. Ultimately, the business of the bank is to deposit and lend money. There are only two conditions under which someone will take out a loan, either the person is very sad or they think the money can be earned with the borrowed money. So, sad people are less in the current situation and more people are those who want to borrow and invest in the industry or business and want to profit from it and earn a lot of money. So this situation is good for the bank and I think the results are quite strong.
The second thing that’s going well for the banks – the last three to five years have been pretty bad for the banks as their lending turned into bad debts and NPAs – now, as the economy improves, there There are many loans, which have turned zero or bad debt in the past, recover slowly, when there is a recovery, it is added directly to your pocket. So, for both reasons, due to the recovery as well as the economic recovery, the banks are showing strong results and it will continue to happen in the same way. Public Sector Banks (PSBs) are expected to perform well for at least a year from here.
After that, RJ Salil asked about sectors that won’t have an impact on rising global tensions or rate cuts announced by the Fed, among others, such as tech stocks which have performed so bullish around the world. Can you name a few sectors we should stay away from for the next two to three months? To which Mr Singhvi said, if you want to stay away because of tensions in global markets or fear of a war between Russia and Ukraine, you have to stay away from the IT and banking, both sectors will remain bad if such a thing happens. But, one thing should be kept in mind that the vibe and atmosphere can change from day to day, suddenly one day they will both say we won’t fight, let’s join our hands. After that, global markets will be in turmoil. The fact is that for one to two weeks there will be huge fluctuations in the market, there will be no one-sided rise or one-sided fall. There may be a day when you wake up to the news that the mood and atmosphere of the market has changed dramatically. So there will be a slight volatility. In such a situation, I will just suggest you not to try to make money at all, just think of the ways to save money, because the one that is saved is yours and you can invest it on the market when possible. so. You can invest the money once after these clouds of global tensions are over.