A panel of ace stock market veterans has placed their bets on Indian equities compounding over time, and urged investors to stay invested for the long haul to reap outsized returns.
At the CNBC-TV18 Global Leadership Summit on November 14, Ashishkumar Chauhan, Raamdeo Agrawal, Ramesh Damani and Manish Chokhani shared their lessons with investors, and resoundingly echoed the huge potential of the India story.
Lessons for Investors
Enam's Manish Chokhani said he would be surprised if the stock market does not grow by 10-15 times from current levels in the next two decades. "It will be a risk to not be invested in India," said Chokhani. Ramesh Damani, BSE Member said the market may be going through a "time correction for a quarter or two", while Raamdeo Agrawal of Motilal Oswal Financial Services said earnings growth will improve, adding that this is the "time to have patience" in the markets. NSE MD and CEO Ashishkumar Chauhan recalled the journey of Indian stock markets from being a 'satta bazaar' 25 years ago to the cumulative market capitalisation rising to 2-1/2 times the banking system.
Bets for the Long Term
Ramesh Damani said the path for India's growth is going to the infrastructure plays, and the opportunity for digital public infrastructure appears the most promising today. He cited the example of how NSE and the digital payments ecosystem has captured India's digitisation potential.
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Raamdeo Agrawal said he is very bullish on the prospects of digital plays, and within it, the capital market intermediaries. These, he said, will give birth to many new companies that will provide solutions to India's problems.
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Manish Chokhani backed financials as a promising bet for the long term.
Ashishkumar Chauhan said investors should closely scan businesses based on technology and biotech for the next big opportunities.
India's Decade
Manish Chokhani made a case for India's stock market growth, citing the example of US economy and its financial market. The US stock market is 66% of world's market capitalisation with 25% of global GDP. India, on the other hand, currently only 4% of the global market capitalisation, with somewhere between 7-8% share of the global GDP, which is going to further rise. Chokhani projected that India's currency will be stronger in another five years, and the market capitalisation will go up from here.
"We are scared of $10 billion going out, I think we will see $10 billion coming in a month," Chokhani said, referring to the large foreign selling that was seen in October.
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