Moneycontrol Interviews Amit Jain: Tata Technologies IPO’s Potential as a Multi-Year Growth Story

Mumbai, November 22, 2023: As Tata Technologies opened its initial public offering (IPO) for subscription today, market experts are weighing in on the potential of this historic offering from the Tata group. Amit Jain, co-founder of Ashika Global Family Office Services, believes that Tata Technologies could be a multi-year growth story akin to Tata Consultancy Services (TCS) and Tata Elxsi.

Also Read: Tata Technologies IPO GMP

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In an exclusive interview with Moneycontrol, Amit Jain, who brings 18 years of experience in the Indian banking and financial services industry, expressed his optimism about the future of Tata Technologies and the broader Indian markets. Here are some key insights from the interview:

US Equities and Indian Markets:

Jain acknowledged the recent rally in US equities but cautioned that the short-term surge in Dow Jones may result in corrections and price adjustments. He highlighted the impressive returns from the S&P 500 and Nasdaq this year despite earlier recession predictions. Jain expressed cautious optimism about the US markets for 2024, particularly due to potential volatility linked to upcoming elections.

Also Read: Tata Technologies IPO Review : Apply or Not?

On the other hand, Jain anticipated a medium-term rally in Indian equities, especially in the mid- and small-cap segments. While the Nifty was deemed fairly valued historically, it appeared expensive compared to other emerging markets. The key to the Nifty’s upward journey, according to Jain, lies in positive foreign institutional investor (FII) inflows, which have been affected by higher US G-Sec yields.

Factors Influencing Market Recovery:

Jain identified the ongoing Israel war and geopolitical tensions in the Gulf region as potential risk factors that could disrupt the market’s current recovery. He also noted that the outcome of state elections in India could have an impact on market sentiment.

RBI and Federal Reserve Meetings:

Regarding upcoming policy meetings by the RBI and the US Federal Reserve in December, Jain anticipated a possible 25 basis point rate hike by the Fed. He emphasized that the rate cut by the RBI would likely follow suit only after the US Fed starts reducing interest rates.

Tata Technologies IPO:

When asked about his expectations for Tata Technologies, Jain expressed confidence in its potential to become a multi-year growth story like TCS and Tata Elxsi. He highlighted the compelling value offered by this IPO, which marks the Tata Group’s return to the market after nearly two decades. Jain pointed out that Tata Technologies’ robust business model could provide substantial returns for long-term investors with a three to five-year perspective.

Other IPOs:

Jain had positive sentiments about the IPOs of IREDA, Fedbank Financial Services, Gandhar Oil Refinery, and Flair Writing, but he particularly favored Fedbank Financial Services, citing its compelling valuation.

Sustainability of the Market Rally:

In conclusion, Jain acknowledged the recent record highs in the broader market, with Nifty Midcap 50 and Nifty Small Cap 250 indices delivering impressive returns. He noted that while some sectors and stocks might undergo short to medium-term corrections after a sharp run, India’s bull market in the mid- and small-cap space was expected to continue its growth.

Investment Focus:

Jain revealed that his bullish outlook was focused on largecap banks such as HDFC Bank, ICICI Bank, Kotak Mahindra Bank, Federal Bank, and Bandhan Bank. In the IT sector, he favored TCS, Wipro, Infosys, and Mphasis. Within the consumer space, Jain found compelling valuations in HUL, Marico, and ITC at current levels.

Tata Technologies IPO GMP

Disclaimer: The views and investment tips expressed by Amit Jain in this interview are his own and not necessarily those of Stockesta.com. He advised users to consult certified experts before making investment decisions.

The Tata Technologies IPO has generated significant interest in the market, and investors will be closely watching its performance in the coming days as they assess the potential for long-term growth, in line with Amit Jain’s positive outlook.

Source: Moneycontrol

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