- Veteran investor Shankar Sharma rejects labeling market views as strictly bull or bear
- Sharma is cautious on Indian large caps but bullish on small-cap stocks
- He invested heavily since March market lows, showing his bullish stance
Veteran investor Shankar Sharma says investors are asking the wrong question when they try to classify market participants as either bulls or bears. Speaking at NDTV Profit's Townhall event, Sharma rejected the idea that a single label can accurately capture his market view, arguing that opportunities and risks exist simultaneously across different segments of the market.
When asked whether he was bearish on Indian equities, Sharma responded: "No, I'm not a bear." "I've been putting in money. I've put in a lot of money from the bottom of March," he said, adding that he had publicly shared his bullish stance during the market correction earlier this year.
At the same time, Sharma made it clear that he is not uniformly optimistic about all parts of the market. "When people say bear or bull, I am both. I am a hare, as I always say," he said.
The investor explained that while he remains cautious on Indian large-cap stocks, he is considerably more optimistic about opportunities within the small-cap universe. "I am bearish on Indian large caps. I am very bullish on Indian small caps," Sharma said.
His comments come even as he continues to caution investors against expecting a repeat of the broad-based rally witnessed earlier in the millenium. Sharma has previously argued that headline indices may deliver limited returns over the next few years, a view that has often led investors to interpret him as bearish on the broader market.
Asked where he sees opportunities within small caps, Sharma pointed to technology-related businesses as a long-term theme. According to him, India remains underrepresented in technology beyond traditional IT services companies.
"My view is that in India, the theme that will play out and play out well will be anything to do with technology," he said.
Sharma added that he has been investing in smaller technology-focused companies, not IT services companies, over the past two years.
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