“Historical Performance…”: Iran’s Mehrabo Port shares his mantra to deal with market volatility
In a conversation with Zee business executive editor Anil Singhvi, independent market expert Mehraboon Irani shared his thoughts on what investors should do on current market volatility and emerging trends.
What should investors do after the last 10% rally?
According to the Iranians, the market is currently in a hesitant phase and is looking for direction after 10% of the rally in the recent trough.
However, he said that such volatility periods often bring long-term investment opportunities.
“History shows that panic creates the best opportunities, but most investors are unable to act because of fear,” he said.
Citing past global events and the 2008 financial crisis, Irani stressed that the market will eventually recover and reward those who remain patient and strategic in the negative phase.
What are the three pillars of the stock market?
Similar to the pillars of democracy (legal rule, enforcement and judiciary), Irani outlines three main drivers of market movement.
According to him, fundamentals, liquidity and emotions are the three pillars of the stock market.
He added that strong mutual fund inflows, liquidity support from the Reserve Bank of India and improved investor sentiment are currently maintaining the market’s buoyancy.
“India’s macroeconomic indicators, such as lowering oil prices, controlling inflation and supporting monetary policies, make it a compelling destination for global investors,” he noted.
Which stocks look undervalued or overvalued now?
“People often think that blue core stocks are safe, but looking at Hindustan leverage, Colgate, dependency, lupin, infosys, what are their returns over the past year or two?” Iran questioned.
He explained that investing in top companies is not enough. Investors need to choose the right stock.
“These may not be in the top 50 or even the top 100, but if the valuation is low and there is potential, it is where wealth is created,” he advised.
Which departments should pay attention to?
In the sector to be watched, the Iranians highlighted Banking and Financial Services (BFSI) and Oil Marketing Companies (OMC), both showing strong revenue momentum.
He also recommends focusing on domestically oriented sectors such as tourism, retail and infrastructure, citing the collection and trends of discretionary spending.
Do you need to be cautious if you have small pockets?
On the downside, he expressed concern for IT companies due to global tips and disappointing revenue. He advises taking caution with heavy-duty businesses that are sensitive to U.S. demand.
What are the hidden gems in current stock market trends?
The Iranians pointed out that textiles and specialty chemicals are two radar sectors that will turn around next.
“These departments have been overlooked for years. When the cycle changes, high-quality companies in these areas can deliver excellent returns.”
Should investors be cautious about geopolitical risks?
Although the country is a relatively resilient economy, Iranians warn that global geopolitical tensions, such as conflicts in the Middle East and conflicts surrounding uncertainty around U.S. trade policy, could cause recent volatility.
“Investors must carefully weigh these risks while making portfolio decisions,” he advised.
