On the broking side as well, though retail has still remained away from the share market, Shah says FY13 has been a better year compared to the previous year.
Rashesh Shah, chairman & CEO of Edelweiss Group says global liquidity will continue to drive markets higher. Indian equities have been on a roll this month mainly on global cues, coupled with the improved economic data and hopes of further rate cuts from the Reserve Bank of India (RBI).
On the broking side as well, though retail has still remained away from the share market, Shah says FY13 has been a better year compared to the previous year. "Investment banking and capital market activity still continue to be very slow. Therefore, it has been a fairly mixed bag but credit is the key driver for growth for everybody for the last few years," he told CNBC-TV18 in an interview.
According to Shah, HNI and wealth management provides a great opportunity but one has to take a five-10 year view as it is still early days.
Reports suggest that Morgan Stanley is looking to exit its wealth management business in India.
Shah believes most of the global firms have struggled in India to build a wealth management business our market needs are very different from other markets. He says one of the key differences is that Indian HNIs, Indian entrepreneurs, Indian promoters are still in the wealth creation mode. They are not yet in the wealth management mode because globally there is second generation-third generation of wealth, which is looking at improving yield and protecting wealth.
While in India, people still want to accumulate wealth, still want to increase their wealth, build their wealth. Therefore, the wealth management needs are very different; the product side and supply chain all of that has to be very different.
"There are lot of Indian banks and other Indian wealth managers who are doing reasonably well and the market will grow by 25-30 percent a year. But one has to be stable, calibrated and very attune to the market's need if one want to be in this business," he told the channel.
Interview transcript on next page.
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