Podcast: JM Financial’s Satish Ramanathan on this market bull run, cyclical sectors, and why we’re still on good grounds for long-term growth

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What is this episode about?

In this 15^th episode of the Prime Podcast, Vidya Bala and Bhavana Acharya have an insightful chat with Satish Ramanathan, CIO of JM Financial fund house. Satish brings with him a 3-decade-long market experience and has worked with fund houses such as Sundaram AMC and Franklin Templeton India. He took the helm at JM Financial AMC in the Covid years. In his long experience, he’s made a mark in getting cyclical calls right and in the mid-and-smallcap space.

The discussion kicks off with explaining the current bull run markets are in, the context in which to look at this market run, why fundamentals are a bit different this time around all of which boil down to why there still is room for equity markets to deliver over time. Satish makes some sharp observations on how opportunities unfolding from strategic factors play a role in sectors such as pharma and chemicals.

The next segment of the discussion then moves to how to play cyclicals, starting with what cyclical means, long-term and short-term plays, and what to do if investors mistime cycles. He also touches upon the banking sector in the discussion over cyclical themes. 

Satish next shares insights on consumption as an overall theme, incorporating observations on where spending habits are changing, how to find segments within the broad umbrella of consumption, and the dichotomy currently between story and reality.

The discussion moves to the JM Financial AMC’s equity funds, with Satish explaining the changes he has made in these funds’ strategies since taking over four years ago. The final section of the discussion covers market valuations, where Satish makes an interesting point on headline index movements and stock-specific movements.

To conclude, this wide-ranging discussion shares good insights on markets, themes, valuations which can help prepare you for markets may have in store.

Key segments in the podcast discussion

1. Introduction – Meet Satish Ramanathan (0:00 – 0:59)
2. Satish Ramanathan’s take on what’s behind the present rally (1:00 – 5:10)
3. Regulatory & strategic factors helping the markets (5:11 – 6:36)
4. Electronics & import substitution (6:37 – 7:44)
5. Will this opportunity be available in the listed space? (7:45 – 8:38)
6. Timing cycles – sharing his wisdom (8:40 – 12:05)
7. Buy & Hold cyclicals? (12:07 – 13:15)
8. Does the same work for thematic funds? (13:17 – 15:08)
9. Banking & finance cycles (15:10 – 18:15)
10. Smaller segments (18: 16 – 18:44)
11. The consumption story (18:50 – 22:37)
12. Pockets in consumption space that are on his radar (22:40 – 23:20)
13. Real estate (23:24 – 28:00)
14. The secret behind the improvement in the performance of JM funds (28:04 – 30.42)
15. Midcap fund – are there still opportunities? (30:44 – 32:46)
16. Valuations – should we be worried? (32:47 – 35:05)

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