Market veteran Neil Parag Parikh says one needs to differentiate between new age companies and mature technology giants, especially when one talks about the US technology sector. During Covid-19 pandemic, shares of many new age companies went up multifold, as interest rates were low, funding was easy and that without any fundamentals, he said, adding that he is not sure whether the space could bounce back anytime soon.
Speaking at the Markets Today Summit, Parikh said mature technology companies such as Google (Alphabet Inc), Facebook (Meta), Microsoft and Amazon do have fundamentals, are profitable and growing well. On asked about an impeding Tech Winter, Parekh, who is Chairman and Chief Executive Officer at PPFAS AMC, said a 20-30 per cent fall in technology stocks not uncommon.
"We are not perturbed by the mature tech space. In fact they provide a good entry point right now. I would differentiate between the two. I have not too confident about the new age tech, but very much confident about the mature space," Parikh said.
Parikh said investors have been spoilt for good returns in the last few years and that expectations are high. He said investors, who came to the market over the 4-5 years, have not seen an elongated bear market. "My worry is that the expectations are still high. Market saw great run in the last two years. That spoilt a lot of people. The return moderation will happen. Some people get it the hard way. Getting a 12-14 per cent return from equities is great . But the younger lot expects 20 per cent return. That is going to be tough to get," he said.
Parikh said equity is a long-term product but investors are obsessed with last six-month return. That needs to change, he said. "Next one or two years will see some pain. They may not be that great and we may see some normalisation," he said.
Meanwhile, Pratik Oswal, Head of Passive Funds at Motilal Oswal AMC, who was also a speaker at the event, said markets globally move in different directions and that investing outside India does have its merits.
Meanwhile, Business Today on Tuesday launched the new Markets Today page.
The Market Today page offers unmatched coverage of stock markets both during and after market hours. From complete stock data to brokerage reports and stock stories to market perspectives, the Market Today page is a one-stop shop for both momentum and long-term investors. Over 4,000 company pages have gone live on BT.in. Each page contains information about stock movement, financial analysis, ratio analysis, technical analysis, shareholding pattern, bulk deals, block deals among other key important data, which is valuable for taking a prudent investment decision.
The company pages also give readers access to cutting edge research tools such as SWOT Analysis and QVT stock score. SWOT analysis comprises ranking a particular stock in terms of strengths, weakness, opportunity and threats. QVT stock score assigns scores on the basis of quality, valuations and technicals.
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