At a time when a large section of Nifty stocks have delivered little to no returns over the past five to seven years, investor sentiment towards the benchmark index remains subdued.
Reflecting on this trend, Parag Thakkar, Head, Fund Manager, Fort Capital said that "Nifty is the most hated commodity in the world right now," suggesting that widespread disappointment in index returns may be creating opportunities that many investors are overlooking.
Citing Tata Consultancy Services as an example, Thakkar pointed to the stock's 6% dividend yield and management's commentary that the second quarter would be better than the first.
He advised investors to look beyond the current weak news flow but cautioned that any recovery may take time. His view, he said, is meant for medium- to long-term investors and not short-term traders.
Thakkar said buying shares of good-quality companies when sentiment and news flow are negative can generate returns over the medium to long term. However, investors should not expect an immediate turnaround.
"You cannot say that TCS and ICICI will grow overnight," he said. "Anybody rational will say that nothing will happen in the short term. You have to look through this negative news."
Thakkar reiterated that investors should focus on business quality and longer-term growth prospects instead of expecting quick gains amid the current market uncertainty.
Stock Market Today
Market benchmark indices Sensex and Nifty were trading in negative on Thursday as elevated crude oil prices above USD 100-per-barrel mark, amid persistent geopolitical tensions, kept risk appetite subdued. The BSE Sensex was down 37.92 points to 74,726.31 at 10:25 am. The NSE Nifty also declined 7.00 points to 23,425.30.
Among the Sensex firms, Tech Mahindra, Axis Bank, State Bank of India, Power Grid, ITC and Infosys were the winners. Mahindra & Mahindra, Adani Ports, Reliance Industries, Sun Pharma, InterGlobe Aviation and Bharat Electronics were among the laggards.
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