Bernstein sees short-term correction but will buy on dips; adds Zomato to portfolio
Venugopal Garre, MD of Bernstein, expressed a balanced approach to the Indian equity market in a CNBC-TV18 interview. According to Garre, the focus is on the viability of business models and their potential to generate returns, rather than categorically favouring mid or large-cap stocks.
Venugopal Garre, Managing Director of Bernstein sees the possibility of a short-term correction but not a deep or sustained downturn. He said they are prepared to buy on dips.
In terms of the earnings outlook for India, Garre remained optimistic. He indicated that even if earnings remain in the mid to low teens, substantial downgrades for India are not anticipated.
He spoke about his company's agnostic approach towards mid and large-cap stocks emphasising the importance of selecting business models that promise returns.
Garre revealed that Paytm, Delhivery, and Zomato are notable holdings in their India portfolio, with a focus on shorter-term evaluations of these stocks.
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He said, “We have stocks like Paytm and Delhivery; Paytm is recently added to India portfolio and Zomato. These three we are still willing to hold on for a while, but I want to highlight that I am not taking a five-year view on these stocks. We typically take a year or quarters and then we see how things evolve in these business models. So, these are three stocks that are there in India portfolio.”
Also Read | Bernstein downgrades these cement stocks, cuts target price as it sees limited improvement in margins
(with input from PTI)
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(Edited by : Shweta Mungre)
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