At BT Market In the present day Summit on Tuesday, ace investor Raamdeo Agrawal, chairman and co-founder, Motilal Oswal, had everybody in splits when he defined on why he regrets shopping for Zomato inventory in 2021.

“I would not have bothered about Zomato however fund managers had been on my head. They mentioned “sir use your workplace to get some allocation”. Lot of individuals with higher levels than me satisfied me and I bought sucked in. The surroundings was such and the demand was excessive. The administration would not even come to Mumbai. They’ve their very own format to declare outcomes. Every kind of nonsense,” Agrawal mentioned. The meals supply platform’s inventory fell 66% from its all-time excessive.

In Mumbai, he was talking at a session titled “Chasing Alpha in a VUCA world”, moderated by Udayan Mukherjee , World Enterprise Editor, India In the present day Group. Shankar Sharma, founder, GQuant Investech and Nikhil Kamath, co-founder, True Beacon & Zerodha additionally spoke on the session.

Agrawal mentioned he confronted Zomato-like scenario in 2008 too.

“In 2008, I bought sucked into Central Financial institution of India. On the peak of 2008 increase, I ended up shopping for massive time in Central Financial institution of India. In two years, probably the most coveted blue chip shares will likely be PSU banks,” he mentioned. He mentioned one other mid-cap mistake of his was shopping for Sterlite Applied sciences inventory when it was at its peak.

Agrawal additionally spoke in regards to the fads that the market has been witnessing recently. 

“12 months again we had been speaking about Zomato, Nykaa, now we’re speaking about PSU banks. A fund supervisor cannot transfer Rs 1 lakh crore from shares like DMart, Asian Paints to a PSU financial institution,” the ace investor mentioned.

Whereas discussing the market volatility, Raamdeo Agrawal mentioned the inventory costs within the final 5-7 years have turn into completely absurd. He additionally added that probably the most coveted blue-chip shares of subsequent two years will likely be PSU banks as a result of the credit score cycle is rising and PSU Banks can report as much as Rs 1 lakh crore revenue in 2025.