INSUBCONTINENT EXCLUSIVE:
Speaking at the ETMarkets Global Summit on Friday in Mumbai, he said markets have always misunderstood stocks of public sector companies as
many of them, especially from mining, oil and gas, banks and power sectors, which have sustained business models, seem to be trading below
their intrinsic values.
Jain chose to side with the value investing style over growth investing
In value investing, investors look to buy underpriced stocks with healthy growth prospects, while in growth investing, the focus is on
growing stocks though they need not be cheap.
The fund manager said he always tries to buy reasonable quality businesses because high
quality businesses are often available at high valuations
It is logical that when some businesses are doing extremely good and people are chasing them, there is value in the rest of the
said.
Jain said investors should not have a negative outlook for the stock market as he thinks the drop in gross domestic product (GDP)
same time interest rates have also fallen
He said India and China had almost the same per capita in 90s
sector in the Sensex was less than 10 per cent.